Crypto Market Cycles | FiCAS (2024)

• Accumulation Phase
• The accumulation phase marks the beginning of the market cycle. It starts after a significant market crash, when prices are at their lowest. Market interest and trading volume are low, creating a stable market.
  During this phase, long-term investors and market pioneers start buying again, anticipating a rebound. Retail investors may not enter the market yet, as sentiment is still neutral.

• Long-term investors, corporate insiders, value investors, experienced traders, and whales start buying assets at low prices.
• Market sentiment is skeptical and uncertain.
• Retail investors are less likely to enter the market.
• Positive news about the market can draw attention and transition the market sentiment to the next phase.

• Markup Phase
• The markup phase is characterized by a consistent upward trend in prices. Positive media attention and growing market demand attract more investors. Skilled investors leverage technical analysis to identify buying opportunities. Prices reach all-time highs, and euphoria sets in among investors. It may be a good time for new participants to enter the market, but caution is advised.

• Growing market demand and media attention, attracting early adopters.
• Skilled investors leverage technical analysis to identify higher lows and higher highs.
• Crypto prices appreciate in value.
• Market sentiment shifts from neutrality to optimism and excitement.
• FOMO (Fear of Missing Out) drives novice investors to enter the market.
• Excessive market valuations and profit-taking by experienced traders.

• Distribution Phase
• The distribution phase marks the end of the bull market. Prices plateau as buyers and sellers reach equilibrium. Market sentiment shifts from optimism to uncertainty. Some investors secure profits, while others still believe in further growth. Prices fluctuate within a specific range, and trading volume increases. The distribution phase signals the end of the bull run and the beginning of a price plateau.

• Buyers and sellers reach equilibrium, resulting in a range-bound market.
• Investors who bought early consider securing their profits.
• Uncertainty grows, causing market sentiment to transition from optimism to uncertainty.
• Negative sentiment, adverse news, and changes in the Crypto Fear & Greed Index may affect prices and trigger a sell-off.
• Technical patterns indicating peak pricing may emerge.

• Markdown Phase
• The markdown phase represents a downward price trend. Selling pressure increases as fear and anxiety dominate the market. It becomes challenging for positive news to reverse the decline. This phase is psychologically challenging for investors, and short sellers may profit from the market decline. Eventually, prices stabilize, and some investors start buying at discounted prices, indicating the beginning of a new accumulation phase. The markdown phase is marked by a downward price trend and increasing anxiety among market participants.

• Selling pressure increases as fear about the future state of the market intensifies.
• The market experiences a cascade effect as asset prices decline.
• Positive news has little impact on reversing the downtrend.
• Short-selling opportunities arise, benefiting from market decline.
• Prices stabilize, indicating the end of the markdown phase and the beginning of a new cycle.
• Some investors return to the market to purchase assets at discounted prices, signaling the start of the accumulation phase.

The accumulation phase marks the beginning
of the market cycle. It starts after a significant
market crash, when prices are at their lowest.
Market interest and trading volume are low,
creating a stable market.
During this phase, long-term investors and
market pioneers start buying again, anticipating
a rebound. Retail investors may not enter the
market yet, as sentiment is still neutral.

• Long-term investors, corporate insiders,
  value investors, experienced traders, and whales
  start buying assets at low prices.
• Market sentiment is skeptical and uncertain.
• Retail investors are less likely
  to enter the market.
• Positive news about the market can
  draw attention and transition the market
  sentiment to the next phase.

The markup phase is characterized by a
consistent upward trend in prices.
Positive media attention and growing
market demand attract more investors.
Skilled investors leverage technical analysis
to identify buying opportunities. Prices reach
all-time highs, and euphoria sets in among
investors. It may be a good time for new
participants to enter the market, but caution
is advised.

• Growing market demand and media attention,
  attracting early adopters.
• Skilled investors leverage technical analysis
  to identify higher lows and higher highs.
• Crypto prices appreciate in value.
• Market sentiment shifts from neutrality
  to optimism and excitement.
• FOMO (Fear of Missing Out) drives novice
  investors to enter the market.
• Excessive market valuations and
  profit-taking by experienced traders.

The distribution phase marks the end
of the bull market. Prices plateau as
buyers and sellers reach equilibrium.
Market sentiment shifts from optimism
to uncertainty. Some investors secure
profits, while others still believe in further
growth. Prices fluctuate within a specific
range, and trading volume increases.
The distribution phase signals the end
of the bull run and the beginning of a price plateau.

• Buyers and sellers reach equilibrium,
  resulting in a range-bound market.
• Investors who bought early consider
  securing their profits.
• Uncertainty grows, causing market
  sentiment to transition from optimism to uncertainty.
• Negative sentiment, adverse news,
  and changes in the Crypto Fear & Greed
  Index may affect prices and trigger a sell-off.
• Technical patterns indicating
  peak pricing may emerge.

The markdown phase represents a downward
price trend. Selling pressure increases as
fear and anxiety dominate the market.
It becomes challenging for positive
news to reverse the decline. This phase
is psychologically challenging for
investors, and short sellers may profit
from the market decline. Eventually,
prices stabilize, and some investors
start buying at discounted prices,
indicating the beginning of a new
accumulation phase. The markdown phase
is marked by a downward price trend and
increasing anxiety among market participants.

• Selling pressure increases as fear about
  the future state of the market intensifies.
• The market experiences a cascade effect
  as asset prices decline.
• Positive news has little impact on
  reversing the downtrend.
• Short-selling opportunities arise,
  benefiting from market decline.
• Prices stabilize, indicating the
  end of the markdown phase and the beginning of a new cycle.
• Some investors return to the market
  to purchase assets at discounted prices, signaling
  the start of the accumulation phase.