Crypto market cycles

Market life cycles are recurring patterns in crypto markets that come from human behavior, supply and demand, news, and liquidity. They have four clear phases called Accumulation, Markup, Distribution, and Markdown. The Accumulation Phase begins after a crash when smart hands quietly buy at low prices. Sentiment is cautious and hope grows slowly. Trading volume is moderate and assets move into fewer wallets. The Markup Phase follows when prices trend upward and more people notice the rise. Sentiment shifts toward optimism and then to greed as newcomers chase gains. Prices can reach new highs and euphoria can push valuations beyond fundamentals. The Distribution Phase arrives when early buyers start to sell to lock in profits. Sentiment becomes mixed and price swings range inside a band. Trading looks steady but selling pressure slowly increases. The Markdown Phase then sees fear dominate and prices fall as traders exit. Panic selling can accelerate declines and the cycle reaches its low. Over time the market finds stability and the next Accumulation Phase begins again. These cycles are not precise clocks. They are rhythms that show up across timeframes and assets. You can watch them with on-chain metrics, price charts, volume data, volatility measures, and sentiment indicators. On-chain data can reveal where coins sit and who moves them. Volume and moving averages help confirm trends. Sentiment tools show whether emotion is driving price more than fundamentals. Use multiple signals to avoid false moves. Manage risk by sizing positions, diversifying across assets, and setting plans for different scenarios. Avoid trading on raw emotion and don’t chase FOMO at peaks. Learn to spot transfer of coins from many small holders to a few large wallets during accumulation and distribution. Remember that cycles are human stories about fear, hope, and greed. Think of them as seasons in a life where loss teaches patience and gains teach humility. Staying curious and disciplined helps you act from clarity rather than panic. Knowledge of cycles does not guarantee success, but it gives perspective and a steadier path through the market’s storms.