{"id":9010,"date":"2023-05-07T14:22:03","date_gmt":"2023-05-07T14:22:03","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=9010"},"modified":"2022-05-13T16:28:16","modified_gmt":"2022-05-13T16:28:16","slug":"market-cycles","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/market-cycles","title":{"rendered":"Market Cycles"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/market-cycles\/#accumulation_phase\" >Accumulation phase:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/market-cycles\/#expansion_phase\" >Expansion phase:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/market-cycles\/#distribution_phase\" >Distribution Phase:<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>It is clear that the market is fractal, and that the price over time returns to movements similar to past events.\u00a0<b>Market cycles should be a fundamental part of your technical analysis,<\/b>\u00a0as they will show you what phase you are in.<\/p>\n<p>It is necessary to clarify that there are 3 phases in a market cycle;\u00a0<b>accumulation, expansion and distribution.<\/b>\u00a0In this article we will talk about each one of them, about how to get the most out of them by learning how to identify them.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"accumulation_phase\"><\/span><b>Accumulation phase:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Generally, this cycle takes\u00a0<b>the longest to develop and the price usually moves within a fairly wide range.<\/b>\u00a0In this phase many investors position themselves cautiously and without leaving any traces. This is how they leave the trader with the speculation that we have entered the\u00a0<b>accumulation phase<\/b>. This should be confirmed with the help of other concepts such as;<b>\u00a0price action and Japanese candlestick patterns<\/b>. However, one can sense that we are starting or are in the middle of this cycle\u00a0<b>for 2 main reasons;<\/b><\/p>\n<p>In this phase we usually hear\u00a0<b>negative news<\/b>\u00a0about this financial asset in the media,\u00a0<b>expressions that generate fear and uncertainty<\/b>\u00a0in the community, clearly small traders who are not mentally prepared can fall into this game and avoid entering the market while the big ones do.<\/p>\n<p>The price after falling, will reach a point where it makes movements or impulses to then create a range or zone to buy. This is where you will need to employ analytical skills and concepts such as<b>\u00a0price action, candlestick patterns and understanding Wyckoff\u2019s theory.<\/b>\u00a0This way you will understand more accurately and be more likely to get your entries right.<\/p>\n<div id=\"image_904478119\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large ls-is-cached lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/10\/ciclos-de-mercado_2.jpg\" sizes=\"(max-width: 765px) 100vw, 765px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/10\/ciclos-de-mercado_2.jpg 765w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/10\/ciclos-de-mercado_2-300x226.jpg 300w\" alt=\"ciclos de mercado Bitnovo\" width=\"765\" height=\"576\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/10\/ciclos-de-mercado_2.jpg 765w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/10\/ciclos-de-mercado_2-300x226.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/10\/ciclos-de-mercado_2.jpg\" data-sizes=\"(max-width: 765px) 100vw, 765px\" \/><\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"expansion_phase\"><\/span><b>Expansion phase:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As the name implies, for this cycle the price expands,\u00a0<b>marking a trend either up or down<\/b>. Normally in this phase most traders enter, since you hear about great news and create a feeling of \u201cFOMO\u201d (Fear of missing out) widely used in the crypto environment. This phase is characterized by strong impulses, short retracements and the trader should know how to take advantage of the long or short entries according to the trend of the expansion phase.<\/p>\n<p><b>The media and large investors for this phase will provide positive information,<\/b>\u00a0as long as<b>\u00a0the trend is upward<\/b>\u00a0so that retailers enter the market to buy and thus inject more liquidity to the impulses. On the other hand,\u00a0<b>if the trend is downwards, the news will be negative, encouraging sales.<\/b><b>\u00a0<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"distribution_phase\"><\/span><b>Distribution Phase:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It is known to be the cycle where large investors liquidate their positions and make numerous sales transactions. They\u00a0<b>also often make candlestick patterns or upward impulses to fool you into thinking that the expansion phase is not yet over.<\/b><\/p>\n<p>You can identify it because it is located in very high areas and possibly in areas of resistance where the price has reacted in the past. If, otherwise, it has no resistance but is at historical highs you will have to leverage other knowledge such as\u00a0<b>Eliot and Fibonacci waves.<\/b><\/p>\n<p>This will help you to have a little more precision as far as the distribution phase could settle.<\/p>\n<p>This phase of the market cycle has one fundamental characteristic which is:<\/p>\n<ul>\n<li><b>The media will report positive and euphoric news, indicating to the trader that the best time to enter the market is when the financial asset or crypto asset is purchased.<\/b>\u00a0This is how you are encouraged to enter the fresh capital market, which can give liquidity to the sales volumes of the great investor.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>It is clear that the market is fractal, and that the price over time returns to movements similar to past events.\u00a0Market cycles should be a fundamental part of your technical analysis,\u00a0as they will show you what phase you are in. It is necessary to clarify that there are 3 phases in a market cycle;\u00a0accumulation, expansion [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-criptomonedas"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/9010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=9010"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/9010\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/6151"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=9010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=9010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=9010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}