Behavioral in #Bitcoin Cycles Throughout its history, the #Bitcoin… — Nodecharts — TG.ME

Behavioral in #Bitcoin Cycles Throughout its history, the #Bitcoin market has exhibited clear cyclical behavior from both short-term and long-term users. These cycles can primarily be categorized depending on the market's state, whether bullish or bearish. Bearish Phase During bearish markets, we observe a recurring pattern: long-term users tend to accumulate while prices are declining. However, not all of these users are experienced investors. Many entered the market during FOMO (fear of missing out) phases, buying at the top and getting trapped throughout the bearish cycle by not selling in time. In the later stages of the bearish phase, institutional actors also emerge, taking advantage of the falling prices to inject large amounts of capital, finding enough liquidity in the downturn to make significant purchases. Once the market reaches its cycle lows, we notice a decrease in long-term users capital, especially those who bought near the all-time highs and finally sell after being unable to bear further losses. At the same time, there is a rebound in short-term user activity, generally more experienced participants, who begin accumulating positions in anticipation of the upcoming bullish phase. Bullish Phase During the bullish phase, it’s crucial to identify key areas of the cycle (marked in orange), as these signal the start of a new bullrun. In this phase, we observe a significant increase in short-term users and a decline in long-term users. In the early stages of the bullrun, traders and institutions detect the shift in market direction, and at the same time, long-term users with larger capital start selling as prices rise. Toward the end of the bullish cycle, short-term users enter the market driven by FOMO, while long-term users continue to sell. These new short-term users eventually become trapped long-term holders when the market reverses direction, starting the bearish cycle all over again. This cyclical behavior has been a constant in the Bitcoin network over the years, and it is highly likely that we will see it repeat in the current cycle. #BTC #Crypto #Onchain