📉 Understanding Market Cycles

Crypto markets follow cyclical patterns:

text
        EUPHORIA
           /\
          /  \
     THRILL   ANXIETY
        /      \
       /        \
   OPTIMISM    DENIAL
     /            \
    /              \
HOPE            FEAR
  /                \
 /                  \
RELIEF          DESPERATION
  \                /
   \              /
    \            /
   OPTIMISM   CAPITULATION
      \          /
       \        /
        \      /
      HOPE  ANGER
          \/
      DEPRESSION

Four Phases of Market Cycles:

Phase	Characteristics	Strategy
Accumulation	Low prices, low volume, negative sentiment	Buy gradually (DCA)
Markup (Bull Run)	Rising prices, increasing volume, growing optimism	Hold and take partial profits
Distribution	High prices, peak volume, euphoria	Take profits, reduce exposure
Markdown (Bear Market)	Falling prices, declining volume, fear	Protect capital, prepare to accumulate