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Crypto Market Cycles: 10 stages of a market cycle | Nominex Blog
Market Cycles

Crypto Market Cycles: 10 stages of a market cycle

Crypto market cycles is what you need to success in in the world of cryptocurrency. Firstly, well done for making it this far and starting on advanced concepts in cryptocurrency trading.

Crypto Market Cycles

What is crypto market cycles

If you 

  1. started at the beginning where we discussed funny and entertaining concepts like why subdermal wallets rock and which exchange will be hacked next, 
  2. held on to our blog all the way through Parabolic SARs, zero-knowledge proofs, and all that boring TA stuff, and 
  3. you’re currently reading this,

then you’ve accumulated enough technical expertise to sufficiently remain profitable from crypto trading. Congrats on finally entering the advanced stages of our journey into the depths of crypto! 

What does "money" mean to you?
  • It is a universal product for exchange. 33%, 88 votes
    88 votes 33%
    88 votes - 33% of all votes
  • Source to achieve the goal. 25%, 68 votes
    68 votes 25%
    68 votes - 25% of all votes
  • Money - is paper... Money is not the key to happiness... 22%, 58 votes
    58 votes 22%
    58 votes - 22% of all votes
  • Pieces of Evil 🙂 11%, 30 votes
    30 votes 11%
    30 votes - 11% of all votes
  • Freedom to spend time with the people I love* 4%, 12 votes
    12 votes 4%
    12 votes - 4% of all votes
  • 1BcA72PGdxO* 1%, 3 votes
    3 votes 1%
    3 votes - 1% of all votes
  • cum bucket* 1%, 3 votes
    3 votes 1%
    3 votes - 1% of all votes
  • -1 OR 2+854-854-1=0+0+0+1 --* 1%, 2 votes
    2 votes 1%
    2 votes - 1% of all votes
  • The authority, the "power", the happiness... 0%, 1 vote
    1 vote
    1 vote - 0% of all votes
  • e* 0%, 1 vote
    1 vote
    1 vote - 0% of all votes
  • 1'"* 0%, 1 vote
    1 vote
    1 vote - 0% of all votes
Total Votes: 267
* - added by visitor

Understanding the cycles of the market

For those of you just joining us, we’d recommend checking out our previous articles. So, we tried to make technical analysis as interesting as we could (little good did that do) and get you all the knowledge you need to pursue these unsteady and volatile waters of crypto liquidity with ease and satisfaction. 

Check out our earlier material and if you’re interested in becoming efficient also give our education project a try. The project, which will include lectures and lessons on all aspects of trading you can think of is coming out soon. Having finished that, you will be able to confidently say you’ve covered all the bases.

Now, as we’re moving onto the advanced stage of learning, you’ll be acquiring concepts that will serve you well when others are failing. Understanding market cycles will only take you about 10 minutes but it will give you quite an edge according to experts: 

Anyway, learning to spot market cycles and buying and selling at the right time will get you serious financial gains compared to most people who are just shooting blindly (even though they don’t think so).

Warning! Study technical analysis before making serious investments and don’t use more than 6% of your capital a day. Trade responsibly! 

Crypto market cycles: what they are

Crypto market cycles

When the price drops a lot, they panic-sell, which triggers other people to panic-sell. When something good happens in the news, for example, people start buying, others see it, assume the price is going up, which means the asset is getting more valuable and therefore they should start buying so they can sell high, and again the momentum picks up fast. 

At some point, the speed at which everyone is buying slows down, and the price reaches its peak. Therefore, smart investors sell here to make profits. But, others notice the price is going down now. There is more of an asset on the market (and the more there is of something the cheaper it is). After that, they start to sell feverishly. 

What will happen to bitcoin

This is noticed by others who start panic-selling. The speed (with bearish momentum) picks up quickly. so, at some point the price hits the bottom where everyone smart has made profits (hopefully you). 

Everyone else is crushed because they bought higher and sold here so as not to lose everything (“Bitcoin is going to ZERO!”). Everyone impressionable is confident Bitcoin is finally dead. 

While the naïve and the inexperienced drink, smart investors who made money at the top buy tons and tons at the phase of depression. Similarly, the price starts moving up again. People who sold everything down at the bottom have no money left, so they’re out of the race, but smart investors made a lot of money, so they’re watching the price grow until the next big peak where they sell again, wait for the price to crash, and buy low. And again.


Stage Stage Investors’ behaviour
Stage 1: Hope‘Hope” stage is the first stage after the “Serious disbelief” – it is characterised by positive signs in the market.Careful, small amounts of money are being invested.
Stage 2: OptimismThis stage comes into play when the market has been showing positive trends for a few months – while the new capital is being invested, the prices are rising.Majority feels comfortable investing their money.
Stage 3: BeliefA logical progression from Stage 2 to Stage 3 – as time goes by, optimism turns into belief.Seek new opportunities in the market.
Stage 4: ThrillEverything is stable – the market is showing positive trends, people are feeling optimistic. As such, they engage in random projects.Invest without hesitation.
Stage 5: EuphoriaThe end of a huge run-up. At this stage, the bull-run is at its peak, people are continuing to invest, often in unnecessary things.Invest without hesitation.
Stage 6: ComplacencyAt this stage, the bull-run is stagnating as people’s expectations are not met. The first signs of a reverse market start appearing.Many investors are not yet ready to deal with the last stages, they continue investing.
Stage 7: AnxietyPeople realize that bull-run can’t last forever. They see the market is reversing, losing value and money.They start reviewing their gains and losses, and become less enthusiastic about investing.
Stage 8: DenialThe value of investments continue to drop.Many investors refuse to sell experiencing unrealistic optimism.They act defensively as they are convinced they have invested their money wisely. 
Stage 9: PanicThe market continues to decline, losses become the new reality. Investors try to save their funds by desperately selling their investments, as they are afraid to lose everything. 
Stage 10: DepressionPeople lose all hope and their belief in the existing market conditions. This stage might take a very long time to come back to Stage 1.The market is at its lowest point in the current cycle. Investors lose hope and money, and are reluctant to invest again.

How to use (Bitcoin market cycles) to your advantage

We could be talking about any currency but as far as we’re concerned Bitcoin is the most hopeful of them all (although you could check out the NMX token while it’s still worth next to nothing, but the price is going up soon). Here’s an example of a cycle that involves Bitcoin:

Example cycle

Here’s a bitcoin market cycle chart:

bitcoin market cycle chart

Bear market cycle

A bear market cycle is when the price goes down. This usually happens at the point of problems from the outside. But then again, a good opportunity to buy low, right? 

“The longest Bitcoin bear market was 58 weeks long between 2013 and 2014 when the cryptocurrency lost nearly 86% of its value.

This was around the same time that Mt. Gox was handling 70% of all Bitcoin transactions worldwide.

In late-2013, Wired Magazine reported the exchange had “effectively been frozen out of the US banking system because of its regulatory problems”.

In 2018, Bitcoin lost more than 70% of its value. This time in the background, however, regulators worldwide started to solidify their stance on cryptocurrencies – for better or worse.”


What is Stage 5 of the Market cycle known as?

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A word of warning in

It’s usually a good idea to use all the techniques we’ve listed, i.e. identifying whether the market is in the accumulation phase before the peak or if you should sell, sell, sell as the price is about to sharply drop, or maybe this is a perfect time to short…Is it a good time bounce? Like, now? 

However, remember that living things move in cycles. Some cryptos end up dead. Ethereum market cycles, for example, are worth studying, and Bitcoin’s, and anyone’s with a good uptime in the business and good team and impressive mechanisms. Do you want to study EOS’s market cycles? Better err on the side of safety and go for the best of the best! 

Which cycles are these?

Example cycle Bubble

Well done once again for moving on to complex concepts!

Crypto market Cycles? Yes please!

Now that we've briefly (or not very briefly) talked about the crypto market cycles, let's see how much attention you were paying. Take the test to find out!


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