Market Cycle Dynamics
In bear markets, interest in cyptocurrency protocols decline (e.g ethereum, bitcoin etc) except the long term holders, smart money and miners who persist to accumulate as much as possible before everyone else figures it out.
However, the bull markets are very different.
Here new speculators and long term holders compete for maximum profitability as price rises.
Long term holders begin distribution by transferring their expensive coins into the hands of new speculators (short term holders) who FOMO in to ride the trend.
As the bull markets peak resulting into fast crashing into the bear markets, new speculators (short term holders) panic sell at a loss to diamond hands (long term hodlers).
In bear markets, interest in cyptocurrency protocols decline (e.g ethereum, bitcoin etc) except the long term holders, smart money and miners who persist to accumulate as much as possible before everyone else figures it out.
However, the bull markets are very different.
Here new speculators and long term holders compete for maximum profitability as price rises.
Long term holders begin distribution by transferring their expensive coins into the hands of new speculators (short term holders) who FOMO in to ride the trend.
As the bull markets peak resulting into fast crashing into the bear markets, new speculators (short term holders) panic sell at a loss to diamond hands (long term hodlers).
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.