Over the last four years, since the cycle top in January 2018 of the crypto market, I have been following different traders to understand markets. Having not sold the top and watching the massive drawdown that ensued, I realized I had a gap in knowledge and decided to start learning.

There are different trading styles, almost just as there are different personalities. One of the most fascinating trading methodologies that I have come across is using cycles. Prior to joining Bitcoin Live as a subscriber, I had never heard about it. If you haven’t, here are a few things to know about it.

Cycles are Everywhere Our life is full of cycles, from seasons, weather, farming, and economic cycles like growth and recession. Cycles are basically a repetitive sequence of events, creating a wave-like structure over time. In markets, we use historical price behavior as a way to track this behavior.

Cycles in Crypto and Financial Markets If you have heard of the term, the four-year cycle, it points out the fact that even a newer asset like Bitcoin already has some established patterns. While cycles are not a technical trading term, they seem useful in positioning oneself during bear and bull markets.

During massive bull runs, the cycles are right-translated. In the case of Bitcoin, it rises longer during 60-day cycles than it declines. If you can correctly guess this, it means you can use it and other technical indicators as well to either take a position or move up your stop loss.

During a long bear cycle in Bitcoin, the cycles are left-translated, meaning they spent less time rallying and more time declining. With better skills in technical and fundamental analysis, you can realize other trading strategies to include in your preferred approach.