Crypto has this wild cycle every four years – 3 years bear, 1 year bull. We all know it, yet many still lose money. Why? Let’s dive into the rollercoaster:
1. The 4-Year Bull Run Cycle
In each 4-year cycle, the first 3 years see a bear market, followed by about 1 year of a bullish spike. Here’s the breakdown:
2014-2018: Bear (177 weeks), Bull (34 weeks)
2018-2022: Bear (157 weeks), Bull (47 weeks)
2022-2026: Still in the bear market until a new all-time high is reached!
2. The Psychology of a Market Cycle
Crypto markets are emotionally intense, driving the phases of every cycle:
Red Phase (ATH hit): Complacency leads to Anxiety, Denial, and finally Panic as prices tank. Many exit here – Capitulation.
Yellow Phase (Accumulation): As prices stabilize, Anger turns to Depression until Hope returns, slowly rebuilding faith.
Green Phase (ATH broken): Optimism grows into Belief, then Thrill, and finally Euphoria. Many buy here, thinking they’re on top.
3. Combining Both Factors
The Anatomy and Psychology of each cycle often lead people to react late, locking in losses or missing profitable exits.
Key Takeaway
Recognize the cycle’s phases – don’t let emotions dictate your trades. Know when to enter, but more importantly, when to exit.
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