What are bitcoin cycles and why is it so important❓
🚀This graph shows the entire history of bitcoin, approximately 13 years. If you open the logarithmic display of the chart, you can see some patterns in price behavior. Namely, that bitcoin moves in cycles. Which in turn are divided into an uptrend and a downtrend.
🎢Three complete cycles can be clearly seen on the chart. One cycle lasts four years on average. Of which 2.5 years of growth, and 1.5 years of decline. At the same time we would like to note that the cycles expand over time. But with the arrival of big money, institutional investors and various global companies, this pattern will be less and less noticeable (like the example of the S&P 500).
Why is bitcoin cyclical❓ The answer is actually very simple. It is only noticeable because bitcoin is in its early stage of development and acceptance. There are cycles in everything, it is a natural phenomenon.
🔋As examples: - World cycles, every 10 to 12 years there is a crisis followed by a renewal and continued growth; - Natural cycles, many examples of how the environment develops and renews; - Our well-being, sometimes you have noticed that your mood and energy is at its highest when you are very productive and feel good, and vice versa, when it is at its lowest and you are less productive.
Markets are human creations, so they are also subject to natural behavior.
How can cycles help trading❓ ✅Statistically, according to brokers and exchanges, 85-90% of traders are losing, 5-10% of traders are breaking even and only 5-7% of traders are earning. One of the most important tasks for any trader is to identify the right trend. Usually, when traders try to trade against the trend, they lose their trading accounts. That is why it is important to understand how to identify the trend and how to earn with the movement of the trend. This is where understanding bitcoin cycles helps. Some of our trading systems are based on these principles.
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@DukeDinhd6 you were bullish when all was bearish and now you are bearish Really is funny
DukeDinhd6
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@santana2331, go against the masses. Look at TOTAL, it's very bearish
AlexWhale
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@DukeDinhd6, I can't say for sure if this is the end or not. But our team believes that the cycle is not over and that the 140,000-200,000 mark is quite possible based on many trading patterns.
ilia-kalia
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I am afraid that 4th cycle is alrready over, and we are in red zone already.