Sep 07, · Still, in Bitcoin's case, it seems the crazy ones gained more than any other group. Bottom Line. Understanding the bitcoin market cycle is a must for any serious trader. You have to analyze the market to determine the perfect time to buy or sell the coin. However, market cycles in . Learning tools for Bitcoin investing. LookIntoBitcoin provides live charts and information using market cycle and on-chain analysis. Designed to give clarity to Bitcoin investors. Jun 06, · The Psychology of a Market Cycle. As a nascent market with few real fundamentals, the cryptocurrency market is driven primarily by sentiment — human emotions. Feelings—from deep depression to euphoric mania — compel traders to buy and sell assets in an emotional cycle.
Bitcoin market cycle chartWhat to know about the Bitcoin market cycle | Interactivecrypto
Sorry to say this will not happen. One or two more cycles at best, once regulations come into effect, there will be a lot less volatility in the markets. At the moment crypto is just speculation based on past trends. The market will completely change once regulations slow this down. BeingCryptic UnknownUnicorn UnknownUnicorn , Depends on how you use a log chart.
Bitcoin : where is the price headed, and when to buy? When is the next alt season? Trade BTC or Alts? Now, I hope the 80k final target will be reached.
About alt season, I'm not sure. We've had a small one already. I think we can get another after a bitcoin retrace, but for now I'm not confident at the current levels.
The whole market is so much different now. Bitcoin still doing it's thing Excellent analysis, Harry! The only thing I'd really take issue with is your suggestion that Bitcoin is a safe investment. The hostility of major governments is still a significant threat to Bitcoin and to its future price , so I don't think we can call it safe yet.
GlenGoodman , You have a point of course! They are worried and maybe they should be. But I think bitcoin is progress, evolution. Even if they regulate, they won't ban.
The technology is already a progress, but it's a program, it can still evolve if the political environment changes. Just an example, if the energy consumption becomes a problem, bitcoin will shift to PoS or something else.
Another hope : I think soon everyone will own bitcoin, and mostly people with money politicians included , and politicians won't ban against their own personal interests. They are the professional hypocrytes! The traders are, however, still hoping for a market correction. They tend to believe they cannot be on the wrong side of the market.
Panic — after denying the market situation for someone, the traders suddenly open up to reality. The bear run is the reality, and losses are unavoidable. The traders don't want to lose everything. They end up selling out of fear. Capitulation — not everyone sells at panic.
Some tend to believe the market can still salvage. After some time, they realize they lose a lot while holding the coins for longer. They sell, thinking its now a free fall. Depression — at this point, the traders don't care about the markets anymore. They have lost all hopes in the markets. However, it is also the point the market starts to rebuild to start from stage 1. The Depression stage might last for an extended period. The whole system can be summarized in short as accumulation, greed, distribution, fear, repeat.
The duration of the cycles is not any important. Whether it runs for weeks, months, or several years, the cycle remains the same. Bitcoin currently seems to be on the belief market cycle stage. Most traders didn't imagine it would run against the falling traditional economy. After a sustained value increase, they started hoping it beats the slump.
Afterwards, they wanted it as the best alternative investment. For now, they trust the coin would bounce from any market issue.
Understanding the market cycles is just half of what you need for successful crypto trading. You need more to learn crypto investments. The first hurdle is emotional control. You are human and falling to the pressure is part of you. You will always have the urge to move with the masses.
The whale traders have mastered the art of using emotions. They can create a market decline which the other traders follow. They end up buying the assets at lower prices for accumulation. The market cycle helps you rely on data rather than emotions.
Stable emotions also help to stay calm even when on the losing end. Once you master the emotions, the second step is to learn more. Consider learning from the other successful traders—research more about the market movements from other research and studies. Remember, market cycles can end. Not every asset stays up forever. Some diminish never to make a return to the market. You have to know whether the market is on the cycle or ending. It seemed like it was headed to the deathbed.
Such long slow times are quite hard to distinguish. It takes a little bit of craziness to keep assets when every signal indicates a lull. Still, in Bitcoin's case , it seems the crazy ones gained more than any other group. Understanding the bitcoin market cycle is a must for any serious trader. You have to analyze the market to determine the perfect time to buy or sell the coin.
However, market cycles in itself are not enough. It would help if you had other tools like technical analysis to understand the real market state. The right tools are the best for successful trading. Like this article. I have lost lots of money testing them for over an year.
Since its inception, the coin has been on a high Bitcoin has experienced a sustained surge in value in recent times.