In the world of cryptocurrencies, the historical market cycle is an essential tool for understanding price action.
This cycle consists of three main phases:
1- The beginning of the takeoff: The cycle begins with a rise in the price of Bitcoin (
$BTC ), which attracts new investments and increases liquidity in the market. After that, investors move towards Ethereum (
$ETH ) in search of additional opportunities.
2. **Altcoin Market**: After the gains of Bitcoin and Ethereum, the market enters the season of altcoins, where investors move towards altcoins such as Dogecoin (
$DOGE ), which offer great growth potential of up to 200% or more.
3. **Correction**: As in any market, the rise is followed by a price correction, where prices decline and the market returns to equilibrium. This correction is considered a natural part of the market dynamics, paving the way for a return to the rise in the future.
In conclusion, investors should follow these stages and develop a deep understanding of market movements, especially now that we are in the correction phase, which will enable them to enhance their chances of success in the volatile world of digital currencies.
*This post is a summary for more details, you can check out my pinned article titled The Historical Cycle of Digital Currencies.
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