{"id":26104,"date":"2023-10-21T02:16:06","date_gmt":"2023-10-21T02:16:06","guid":{"rendered":"https:\/\/zebpay.com\/in\/?p=26104"},"modified":"2023-10-21T02:16:07","modified_gmt":"2023-10-21T02:16:07","slug":"day-7-of-navratri-understanding-crypto-market-cycles","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/day-7-of-navratri-understanding-crypto-market-cycles","title":{"rendered":"Day 7 of Navratri: Understanding Crypto Market Cycles"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/day-7-of-navratri-understanding-crypto-market-cycles\/#The_Stages_of_a_Market_Cycle\" title=\"The Stages of a Market Cycle\">The Stages of a Market Cycle<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/day-7-of-navratri-understanding-crypto-market-cycles\/#Accumulation_Phase\" title=\"Accumulation Phase\">Accumulation Phase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/day-7-of-navratri-understanding-crypto-market-cycles\/#Markup_phase\" title=\"Markup phase\">Markup phase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/day-7-of-navratri-understanding-crypto-market-cycles\/#Distribution_Phase\" title=\"Distribution Phase\">Distribution Phase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/in\/blog\/day-7-of-navratri-understanding-crypto-market-cycles\/#MarkDown_phase\" title=\"MarkDown phase\">MarkDown phase<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/in\/blog\/day-7-of-navratri-understanding-crypto-market-cycles\/#Bitcoin_Cycles\" title=\"Bitcoin Cycles\">Bitcoin Cycles<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Since the inception of Bitcoin, the Crypto market has seen several ups and downs, popularly known as market cycles. Each cycle of the crypto market has several stages which often coincide with the larger economic landscape. Today, in the 7th blog of our 9-part series, let us understand the different stages of a crypto market cycle.<\/p>\n\n\n\n<p>A market cycle often starts with early adopters taking positions before the masses discover the price movements. This is because the fair majority of the retail market waits for price movement in a bullish direction before taking a buy position. Moreover, when the price starts to move in a bullish direction, investors often wonder if the price has peaked. Amid this confusion, opportunities are lost. Therefore, it is important to analyze markets in a longer time frame and buy fundamentally robust crypto assets which are truly solving a problem.&nbsp; With that, let us explore the various stages of a market cycle.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Stages_of_a_Market_Cycle\"><\/span>The Stages of a Market Cycle<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Accumulation_Phase\"><\/span>Accumulation Phase<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This stage is marked by less volatility. Most retail investors sell their assets during this stage contemplating the fear of a price drop. However, seasoned investors take this opportunity to accumulate their holdings as the asset is cheaply available. Periodic accumulation of assets during this stage can prove to be beneficial from a long-term perspective provided that there are no black swan events in the industry and other macro-economic factors and regulatory factors support the market.<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/in\/blog\/what-is-fundamental-analysis-in-crypto\" target=\"_blank\" rel=\"noreferrer noopener\">Understanding Fundamental Analysis In Crypto<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Markup_phase\"><\/span>Markup phase<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Markup phase usually marks the beginning of a bull run where the price takes strong support and starts moving upwards. The bulls begin to gain control in this phase and many short positions tend to break. News about the market is aggressively covered by the media and investors can smartly take positions. Increased news coverage also increases the possibility of new investors venturing into the crypto market which adds fuel to the bull run.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Distribution_Phase\"><\/span>Distribution Phase<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is a stage where the price usually peaks and can breach the previously set all-time high. FOMO traders, the ones who are taken over by greed end up buying in this phase with the hope that the price reaches even further. Lack of research often blinds investors from looking at the larger picture. This is also a stage where the seasoned investors who usually take buy positions in the accumulation phase end up selling their holdings and hence the bulls turn into bears. When the \u201cSmart Money\u201d starts leaving the market, a strong resistance is encountered and the market usually reverses marking the beginning of the Markdown phase.<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/in\/blog\/crypto-investing-vs-crypto-trading\" target=\"_blank\" rel=\"noreferrer noopener\">Crypto Investing vs Crypto Trading<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MarkDown_phase\"><\/span>MarkDown phase<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>At this stage, the market takes a pessimistic outlook towards the industry and Fear, Uncertainty and Doubt set in. The investors who end up buying assets in the distribution phase often get their hands burnt and end up exiting the market at a loss. The price drops to a point where another strong support is encountered. At this stage, most FOMO investors exit the market and the seasoned investors see the sign of accumulation and again take buy positions and the whole cycle continues.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bitcoin_Cycles\"><\/span>Bitcoin Cycles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Since its inception in 2009, Bitcoin has seen close to 4 cycles, and each cycle can be broken down into the above-mentioned phases. Here is a snapshot of Bitcoin&#8217;s price movement since its beginning. These cycles can be understood better when the price of Bitcoin is seen on a logarithmic scale rather than a linear scale. This is because the current price of Bitcoin is way higher than the price during its inception.<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/in\/blog\/bitcoin-price-prediction\">Bitcoin Price P<\/a><a href=\"https:\/\/zebpay.com\/blog\/bitcoin-price-prediction\" target=\"_blank\" rel=\"noreferrer noopener\">r<\/a><a href=\"https:\/\/zebpay.com\/blog\/bitcoin-price-prediction\">ediction<\/a><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/lh7-us.googleusercontent.com\/04X8KOsa0aHH76csPhBbuvfEO7AqWYUfkMWtfbV48IFjhJbAgWSXCH5_lNsfbwg4cjdXW5tW0OjnwP9Fbc2JjB4MogjxmCvbQsqn1hyi4_hTM9jjL2bobpIB7_KzWUU5UDpXlKwrC6YVZh17ZfWO8Jk\" alt=\"\"\/><\/figure><\/div>\n\n\n<p><em>Source: Trading View<\/em><\/p>\n\n\n\n<p><em>Note: The above-mentioned price chart is indicative and captures the historical price movements. However, it is important to note that cycles may not repeat as well. This blog should not be taken as an investment recommendation, and investors should conduct their own thorough research before investing in the Crypto Markets.<\/em><\/p>\n\n\n\n<p>To learn more about Crypto, <a href=\"https:\/\/zebpay.com\/in\/blog\/what-is-web-3-0\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/zebpay.com\/blog\/what-is-web-3-0\" rel=\"noreferrer noopener\">Web 3<\/a> and Blockchain, visit ZebPay blogs. Click on the banner below to join the millions taking part in the Navratri festive celebrations. Stay tuned for our next blog which will detail \u201cImportance of Due Diligence in Crypto Investing\u201d in this 9-part series.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/zebpay.com\/in\/navratri-crypto-trading-utsav?utm_source=blog&amp;utm_medium=banner&amp;utm_campaign=navratri\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/10\/Navratri-Crypto-Banner-Day-07-1024x512.jpg\" alt=\"Navratri Crypto Banner Day 07\" class=\"wp-image-26106\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/10\/Navratri-Crypto-Banner-Day-07-1024x512.jpg 1024w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/10\/Navratri-Crypto-Banner-Day-07-300x150.jpg 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/10\/Navratri-Crypto-Banner-Day-07-768x384.jpg 768w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/10\/Navratri-Crypto-Banner-Day-07-150x75.jpg 150w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/10\/Navratri-Crypto-Banner-Day-07.jpg 1062w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since the inception of Bitcoin, the Crypto market has seen several ups and downs, popularly known as market cycles. Each cycle of the crypto market has several stages which often coincide with the larger economic landscape. Today, in the 7th blog of our 9-part series, let us understand the different stages of a crypto market [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":26105,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[16],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/26104"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=26104"}],"version-history":[{"count":1,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/26104\/revisions"}],"predecessor-version":[{"id":26107,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/26104\/revisions\/26107"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/26105"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=26104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=26104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=26104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}