All Things Follow Patterns: Deciphering Bitcoin Through Nature's Lens
Before delving deep, one must grasp a foundational truth: markets, with crypto being no exception, exhibit recurring patterns 🔄, much like nature's intricate tapestry. Witness these rhythms in seasonal shifts 🍁, the sun's majestic journey from dawn 🌅 to dusk 🌄, and even the emotional ebb and flow we undergo daily 😊😔.
While countless individuals navigate the market's turbulent waters, a single trait echoes through every investor: raw emotion 😨😃. Fear and greed are the primary market drivers 📈📉. Stark numbers present a sobering reality: 95% of cryptocurrency enthusiasts witness their assets evaporate, leaving a meager 5% standing tall 🏆. However, mastering the art of reading market sentiments and recognizing the tides of collective joy and despair can be your ticket to the elite circle 🥇
Unraveling the Cyclical Model 🔄
Now that you're familiar with the cyclical model 📊, it's of paramount importance to dive deep into its intricate details and fathom how this insight can be wielded in the crypto realm 🪙. Let's explore the cycle's various stages.
Below is a depiction of the cyclical model. You might be tempted to dismiss it as just another chart from a mundane tome on markets, trading, and investments 📚. But, hold that thought!
Pause and imprint this graph onto your mind 🧠. The reason? You'll be in for a surprise when you discover the striking resemblance this illustration holds with concrete scenarios we'll unveil later 🕵️♂️.
Accumulation Phase 📦
Smart Money 💼: In this period, the asset’s value seems stagnant and "unexciting" 🟦. Regular investors and traders, the retail crowd 🙍♂️🙍, tend to step back, paving the way for the "smart money" 💡💰 (major banks, hedge funds, big players) to seize assets at a bargain.
First Growth Phase 📈
Institutional Investors 🏢: Here, the asset starts its ascent 🌱, yet subtly, not enough to make headlines 📰. The "smart money" persists in purchasing, preparing the terrain for what's next.
Euphoria Phase 🎉
Public 🌍: Arguably the most electrifying cycle segment 🚀. As prices soar, retail participants flock 🐦. The media spotlight intensifies 🎥, newcomers enter buying en masse, further fueling the surge. And the "smart money"? They strategically exit, handing over to the novices.
Capitulation Phase 📉
Capitulation 🏳️: Then, the downturn sets in. As prices dip, after "smart money" has exited, euphoria turns to dread 😱. Late buyers, who hopped in during the highs, are now in a frenzy, offloading assets. Thus, enters the "capitulation phase."
The pattern? A perennial one, consistent across every market landscape 🔄. Grasping this cyclical nature aids in making informed moves – to buy, to sell, or just to hold and watch ⏳.
Bringing Theory to Life: Tangible Scenarios 📚➡️🌍
Shifting our focus to concrete instances, consider the subsequent graph, which chronicles Bitcoin's entire financial trajectory 📈. This illustration lets us trace its periodic patterns. Conventionally, such a phase stretches over four years: a bullish 📈 period enduring 2.5 years and its bearish 📉 counterpart occupying the next 1.5 years.
Keep in mind, these periods are merely indicative and can oscillate due to a myriad of elements 🌪️. Still, this template sheds light on prospective oscillations in Bitcoin's valuation.
Next, we're diving deep into each Bitcoin cycle 🔄. But first, rewind to the original cyclical model graph. Now, stack up real-world instances against the cyclical model chart 📊. Spot how the real-world examples mirror the cyclical graph?
The First Bitcoin Cycle 🌱
BTC was crafted on PCs purely for enthusiasts' thrills, sans regulators 👨💻. Between July '09 and June '11, BTC experienced its premier bullish wave 📈, soaring to $18.5 from mere $0.05, a staggering +64,000% leap!
The Second Bitcoin Cycle 📈
BTC touched its first peak 🏔️, ushering its maiden bearish phase 📉. After a steep 93% decline, the bullish vibe quickly resurfaced, and from Nov '11 to Nov '13, BTC rocketed 🚀 from $2 to $1,240 - a whopping +60,000%!
The Third Bitcoin Cycle 🐻
Another bear market came with a deep 86% cut - BTC plummeted from $1,240 to $167. From Jan '15 to Dec '17, bullish vibes raised the stake to $19,800 📈, a rise of 11,800%.
The Fourth Bitcoin Cycle ⏳
BTC faced another 84% trimming 📉. From Dec '18 to Nov '21, the bullish phase propelled BTC to a majestic $69,000 from a modest $3,123, charting a 2,108% ascent.
The Fifth Bitcoin Cycle 🚀
We stand here, as BTC price dances between $18k-$FWB:25K 🩰, setting the stage for the Bitcoin cycle's nascent stages. A bullish tide is on the horizon 🌅, a moment crypto aficionados keenly anticipate.
❗See related ideas below❗
Like, share, and leave your thoughts in the comments! Your engagement fuels our crypto discussions. 💚🚀💚
Before delving deep, one must grasp a foundational truth: markets, with crypto being no exception, exhibit recurring patterns 🔄, much like nature's intricate tapestry. Witness these rhythms in seasonal shifts 🍁, the sun's majestic journey from dawn 🌅 to dusk 🌄, and even the emotional ebb and flow we undergo daily 😊😔.
While countless individuals navigate the market's turbulent waters, a single trait echoes through every investor: raw emotion 😨😃. Fear and greed are the primary market drivers 📈📉. Stark numbers present a sobering reality: 95% of cryptocurrency enthusiasts witness their assets evaporate, leaving a meager 5% standing tall 🏆. However, mastering the art of reading market sentiments and recognizing the tides of collective joy and despair can be your ticket to the elite circle 🥇
Unraveling the Cyclical Model 🔄
Now that you're familiar with the cyclical model 📊, it's of paramount importance to dive deep into its intricate details and fathom how this insight can be wielded in the crypto realm 🪙. Let's explore the cycle's various stages.
Below is a depiction of the cyclical model. You might be tempted to dismiss it as just another chart from a mundane tome on markets, trading, and investments 📚. But, hold that thought!
Pause and imprint this graph onto your mind 🧠. The reason? You'll be in for a surprise when you discover the striking resemblance this illustration holds with concrete scenarios we'll unveil later 🕵️♂️.
Accumulation Phase 📦
Smart Money 💼: In this period, the asset’s value seems stagnant and "unexciting" 🟦. Regular investors and traders, the retail crowd 🙍♂️🙍, tend to step back, paving the way for the "smart money" 💡💰 (major banks, hedge funds, big players) to seize assets at a bargain.
First Growth Phase 📈
Institutional Investors 🏢: Here, the asset starts its ascent 🌱, yet subtly, not enough to make headlines 📰. The "smart money" persists in purchasing, preparing the terrain for what's next.
Euphoria Phase 🎉
Public 🌍: Arguably the most electrifying cycle segment 🚀. As prices soar, retail participants flock 🐦. The media spotlight intensifies 🎥, newcomers enter buying en masse, further fueling the surge. And the "smart money"? They strategically exit, handing over to the novices.
Capitulation Phase 📉
Capitulation 🏳️: Then, the downturn sets in. As prices dip, after "smart money" has exited, euphoria turns to dread 😱. Late buyers, who hopped in during the highs, are now in a frenzy, offloading assets. Thus, enters the "capitulation phase."
The pattern? A perennial one, consistent across every market landscape 🔄. Grasping this cyclical nature aids in making informed moves – to buy, to sell, or just to hold and watch ⏳.
Bringing Theory to Life: Tangible Scenarios 📚➡️🌍
Shifting our focus to concrete instances, consider the subsequent graph, which chronicles Bitcoin's entire financial trajectory 📈. This illustration lets us trace its periodic patterns. Conventionally, such a phase stretches over four years: a bullish 📈 period enduring 2.5 years and its bearish 📉 counterpart occupying the next 1.5 years.
Keep in mind, these periods are merely indicative and can oscillate due to a myriad of elements 🌪️. Still, this template sheds light on prospective oscillations in Bitcoin's valuation.
Next, we're diving deep into each Bitcoin cycle 🔄. But first, rewind to the original cyclical model graph. Now, stack up real-world instances against the cyclical model chart 📊. Spot how the real-world examples mirror the cyclical graph?
The First Bitcoin Cycle 🌱
BTC was crafted on PCs purely for enthusiasts' thrills, sans regulators 👨💻. Between July '09 and June '11, BTC experienced its premier bullish wave 📈, soaring to $18.5 from mere $0.05, a staggering +64,000% leap!
The Second Bitcoin Cycle 📈
BTC touched its first peak 🏔️, ushering its maiden bearish phase 📉. After a steep 93% decline, the bullish vibe quickly resurfaced, and from Nov '11 to Nov '13, BTC rocketed 🚀 from $2 to $1,240 - a whopping +60,000%!
The Third Bitcoin Cycle 🐻
Another bear market came with a deep 86% cut - BTC plummeted from $1,240 to $167. From Jan '15 to Dec '17, bullish vibes raised the stake to $19,800 📈, a rise of 11,800%.
The Fourth Bitcoin Cycle ⏳
BTC faced another 84% trimming 📉. From Dec '18 to Nov '21, the bullish phase propelled BTC to a majestic $69,000 from a modest $3,123, charting a 2,108% ascent.
The Fifth Bitcoin Cycle 🚀
We stand here, as BTC price dances between $18k-$FWB:25K 🩰, setting the stage for the Bitcoin cycle's nascent stages. A bullish tide is on the horizon 🌅, a moment crypto aficionados keenly anticipate.
❗See related ideas below❗
Like, share, and leave your thoughts in the comments! Your engagement fuels our crypto discussions. 💚🚀💚
Private community with my recommendations 👉 [ bit.ly/bs-alerts ]
Asset Management 👉 [ bit.ly/assetmn ]
Asset Management 👉 [ bit.ly/assetmn ]
Related publications
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.
Private community with my recommendations 👉 [ bit.ly/bs-alerts ]
Asset Management 👉 [ bit.ly/assetmn ]
Asset Management 👉 [ bit.ly/assetmn ]
Related publications
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.