marketmoves

Financial markets don’t move randomly.
Behind every price movement is human psychology, and that psychology follows a cycle.

Understanding market cycles helps traders and investors:
~ Avoid buying at the top
~ Avoid panic selling at the bottom
~ Position themselves before major moves

In this article, we’ll break down the three main phases of a market cycle in a simple and practical way.

WHAT IS MARKET CYCLE

A market cycle is the natural progression of price movement over time, driven by:
• Fear and greed
• Supply and demand
• Smart money vs retail behavior

Every market (crypto, stocks, forex) moves through repeating phases.

The core phases we’ll focus on are:
1. Accumulation
2. Manipulation
3. Distribution

1️⃣ Accumulation Phase (Smart Money Buys Quietly)
This phase happens after a major drop.
Price behavior:
• Price moves sideways
• Low volatility
• Market feels “boring”
• Bad news dominates sentiment
Most people think:
“This asset is dead.”
But in reality, this is where experienced players start buying quietly.
Key characteristics:
• Strong support holding
• Volume slowly increases
• Weak hands already sold
• Price stops making lower

2️⃣ Manipulation Phase (Trend & Hype Begin)
This is where most profits are made.
Price behavior:
• Clear uptrend
• Higher highs and higher lows
• Breakout from accumulation range
This is when:
• News turns positive
• Influencers become active
• Retail interest starts growing
Key characteristics:
• Strong momentum
• Shallow pullbacks
• Break and retest structures
• Increasing volume

3️⃣ Distribution Phase (Smart Money Sells to the Crowd)

This phase looks bullish — but it’s dangerous.
Price behavior:
• Price slows down
• Volatility increases
• Big wicks appear
• Breakouts start failing

This is where smart money distributes positions to late buyers.
~ You’ll often hear:
“This time is different”
“We’re going much higher”
~ Key characteristics:
• Sideways movement at the top
• Price struggles to make new highs
• Volume spikes on down candles

WHAT HAPPENS AFTER DISTRIBUTION?

After distribution:
• Price breaks down
• Panic selling begins
• Market returns to accumulation

And the cycle repeats

WHY UNDERSTANDING MARKET CYCLE MATTERS

Knowing market cycles helps you:
• Buy when fear is high
• Sell when greed dominates
• Avoid emotional decisions
• Trade with patience, not impulse

Instead of asking:

“Is this coin bullish?”

Start asking:

“Which phase of the market are we in?”
#MarketMoves