The Bitcoin Cycle refers to the repetitive pattern in which the price of Bitcoin fluctuates over time. This cycle typically involves four phases: accumulation, uptrend, distribution, and downtrend.
During the accumulation phase, Bitcoin is accumulated by large investors at low prices. This is followed by an uptrend where the price of Bitcoin steadily increases as more investors jump on board. The distribution phase occurs when the price peaks and early investors start selling off their holdings. Finally, the downtrend phase sees a decrease in the price of Bitcoin as selling pressure outweighs buying pressure.
The Bitcoin Cycle is driven by a combination of factors including market sentiment, supply and demand dynamics, regulatory developments, and macroeconomic trends. Understanding and predicting the Bitcoin Cycle can help investors make informed decisions about buying, selling, or holding onto their Bitcoin holdings.
