Crypto Market Cycles: When to Buy and When to Sell
Crypto markets move in cycles. They always have. Understanding where you are in the cycle is one of the most valuable skills a trader can develop.
The Four Phases
Accumulation. The market has bottomed. Smart money is quietly buying. Prices are flat and boring. Nobody on social media is talking about crypto. This is the best time to buy but the hardest time to do it emotionally.
Markup. Prices start rising. Early buyers are in profit. Media coverage increases. More people start buying. Momentum builds. This is where most of the gains happen.
Distribution. Prices are at or near the peak. Euphoria is everywhere. Your taxi driver is talking about Bitcoin. Long-time holders start selling to new, excited buyers. This is where you should be taking profits.
Markdown. The bubble pops. Prices crash. Panic selling. Media writes obituaries for Bitcoin. This is the worst time to sell but it is when most people do.
How to Identify the Phase
Social media sentiment is a surprisingly good indicator. When everyone on Twitter is bullish and talking about "to the moon," you are probably in distribution. When nobody cares and everyone says crypto is dead, you are probably in accumulation.
On-chain metrics help confirm. Check exchange inflows (selling pressure) and outflows (accumulation). Look at long-term holder behavior.
Cycle-Aware Trading
Accumulate during the boring times. Ride the markup with the AI predictions on btcsignals.vip for short-term timing. Take profits in distribution. Sit in stablecoins during markdown.