4 Phases of Market Cycles

Good Morning,

As you might know, my mission is to help you in escaping inflation caused by Money Printer and assist you in building wealth.

In previews newsletter, I introduced a fundamental concept that can guide you when choosing altcoins for speculate. (link)

Today, I will present yet another crucial concept that could potentially shift your perspective regarding bitcoin, crypto and other financial markets. 

If you are disciplined enough to apply this concept appropriately, it could be a game-changer for your life.

But first, save time on your research by checking out the lins below.

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💰Bitcoin

• Tether bought $629 milion worth of Bitcoin . (link)
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• Bitcoin is going to $0. (link and link)
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• Bitcoin Bull Market has not started yet. (link 1, link 2, link 3, link 4 )
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• If you don't own Bitcoin   , you're going to get rekt over the coming years. (link)

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• 25 years ago, Neo chose the red pill and discovered Bitcoin. (video)

🚀 Altcoins

• Coinbase is on track to make hundreds of millions in PROFIT (link)

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• BitMEX Co-Founder Talked About Memecoins: 'They Should Not Be Dismissed Too Quickly!' (link)
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• Dogwifhat Becomes Third-Largest Meme Coin as Bitcoin Clings to $70K (link)

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• Bitcoin Stolen From 'Call of Duty' Cheaters, 'Notcoin' Airdrop Nears. (link)

📈 Trading

• Doge Coin printed first buy signal - (link)

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• $CHNG looking strong and eyeing for 200% move from here 🚀(link)

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• $BTC has broken out of the Ascending Triangle on the Monthly chart. (link)
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• Ignite your trading strategy with the power of confirmation candles (Picture)

Educational

Market Structure: The 4 Phases Of A Full-Market Cycle

To better comprehend this, let’s asume that a a full market cycle is akin to a full year.

A full year consists of 4 seasons: Spring, Summer, Autumn & Winter.

The 4 phases of a full market cycle include: Acumulation (Spring), Markup (Summer), Distribution (Autumn) & Decline (Winter).

In the illustration bellow, you can see a graphic representing all 4 phases.

For zoom in click on it and read the characteristics of each pahases.

Accumulation (Spring)

The Accumulation phase is akin to the Spring season.

After a harsh winter, the snow has melted, leaving the soil fresh and fertille.

This is the time when you sow the seed for future gains.

During this phase, a downtrend in the chart shifts to neutral or sideways.

We can see this phase on BTC/USD chart below.

This phase can be observed in the BTC/USD chart below.

That is the accumulation phase.

Markup (Summer)

Summer commences when the weather becomes warmer.

The Markup phase begins when the price confirms a higher high above the sideways trend.

The Markup Phase is also referred to as an Uptrend or Bullish trend.

In the illustration below, you can observe how the price broke the sideways trend and established a Bulish trend, entered the “Markup” phase.

The price during the Markup phase establish both higher highs and higher lows.

Most macro traders enter the market when the sideways trend is broken.

They wait for the market to confirm the Markup phase, observing the price to close above the Accumulation (sideways) zone.

Distribution (Autumn)

Autumn is the time of the year when you should harvest.

If you don’t, all your crops will rot.

In market terms, this equates to the Distribution phase.

Is the phase where the max greed is reached and it is characterzed with a sideways price move period like in acumulation phase, but after a Bulish trend.

This is the phase where maximul greed is attained, and it’s characterized by a sideways price movement period, similar to the accumulation phase, but following Markup.

Identifying this phase on a Bitcoin chart can be challenging, as it typically last shorter than the accumulation phase.

Check the chart below.

Decline (Winter)

A Decline generally follows after the price establishes a lower territory below the distribution sideways movement.

Macro traders await confirmation of this phase to exit their positions.

Confirmation occurs when the price drops below the sideways movement.

This phase is dominated by fear.

The individuals are frightened and believe the price will drop to zero.

This is the period when all the excesses and inefficiencies produced during the Markup phase are erased. 

The trend is characterized as a price pattern with lower lows and lower highs.

Conclusion

If you want to build wealth within the financial industry, you must understand the concept of Market structure, even if you're not a trader.

It keeps you aware of whether it's time to accumulate more or sell.

I hope this guide help you in your journey.

Now, go make your own research

Best Regards,

Mr. GoBrr

Meme Of the Day

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.