
Valerka π΅π£π©
@valerymaxx
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During trading in Vooi @vooi_io we need to consider local phases while seeing the full picture of the global one. Global cycles are long-term, lasting for years. Local cycles are short-term, lasting for days, weeks or months. They can be within a global cycle.
It's need to remember that cycles can be influenced by factors: BTC halving - a decrease in supply; macroeconomics - interest rates, inflation; regulation - laws, bans or approvals; technological trends - DeFi, AI, Layer 2; mass psychology - fear and greed drive the market.
The psychological factor plays a key role in market cycles. It manifests itself differently in phases. During accumulation, it's fear, apathy. During growth, it's hope, optimism. In euphoria, it's greed, FOMO. And when the market falls, it's panic, denial, and capitulation. 0 reply
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The full cycle includes four phases:
1. Accumulation: occurs after a strong decline (bear market), the market is "in the shadows", interest in crypto and volatility is low. But smart investors begin to buy up assets.
2. Markup: prices start to rise steadily, growth may go into a violent pump. Media interest appears, assets are bought up en masse due to FOMO.
3. Euphoria, distribution: prices reach their maximums, belief in "eternal growth". Smart investors begin to take profits.
4. Markdown: market reversal, massive sell-offs, panic, capitulation, bear market. Weak players leave and some crypto projects cease to exist.
It's important for traders to understand cycles, it helps to enter a trade at the right moment, teaches patience and discipline. 1 reply
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