Crypto moves in cycles: bull markets (prices rising) and bear markets (prices falling). Understanding these cycles is the key to building wealth in crypto.
Here’s how to spot them and what to do.
Bull Market (Uptrend)
Definition
Prices rise 20%+ from recent lows and continue climbing.
Characteristics
Higher highs and higher lows
Optimistic sentiment
FOMO buying
Media hype
“Everyone is making money”
What to Do
Strategy
Action
Hold
Don’t sell too early
Take profits
Sell 10-20% at each new high
Don’t FOMO
Don’t buy at the top
Set targets
Know when to exit
Bear Market (Downtrend)
Definition
Prices fall 20%+ from recent highs and continue declining.
Characteristics
Lower highs and lower lows
Fear and panic selling
Negative news cycle
“Bitcoin is dead” headlines
Everyone says “it’s over”
What to Do
Strategy
Action
Don’t panic sell
Selling at the bottom is the worst mistake
Dollar-cost average
Buy regularly at lower prices
Rebalance
Buy more at discounts
Stay calm
Every bear market has recovered
The 4-Year Crypto Cycle
Crypto follows a roughly 4-year pattern tied to Bitcoin halving events:
