What is crypto market cycle?

What Is Crypto Market Cycle?

A crypto market cycle is the repeated pattern of prices rising (bull market), peaking, falling (bear market), and bottoming before the next rise. Cycles are driven by adoption, speculation, regulation, and macro conditions. They are not fixed in length or size; each cycle is different, but the idea of boom and bust is common.

Phases

In a bull phase, prices trend up, volume and interest rise, and new investors enter. At a top, euphoria and leverage are often high. In a bear phase, prices fall, sentiment turns negative, and weak projects fail. At a bottom, fear is high and many leave. Then the cycle can start again.

How to Use This

Do not assume the next cycle will mirror the past. Avoid buying at the top out of FOMO and selling at the bottom out of panic. Consider dollar-cost averaging and only risk what you can afford to lose. In India, tax applies when you sell, so plan exits with that in mind.