Understanding the phases of the cryptocurrency market: the key to successful investments

Beginner investors in the crypto world should understand the phases of the market cycle. Without this, there's no way forward. The 2025 market is still cyclical, with four main phases:

• accumulation (accumulation)
• growth (markup)
• distribution
• decline (correction)

Accumulation Phase

Prices are falling. The market is freezing. Most investors have scattered, seemingly forever. In such moments, only a small group of experienced players sees potential. “Smart money” quietly buys up assets. They have been through this before. They wait. Patiently.

Growth Phase

Then something changes. The market comes alive. RSI indicators start to give signals. Volumes are increasing. Prices are rising, sometimes hesitantly, but steadily. The media remembers cryptocurrencies. At this stage, it seems appropriate to rely on fundamental analysis, but many are already losing their heads over the rising charts.

Distribution Phase

Peak. A surge in prices. Everyone around is discussing cryptocurrencies. Even grandmothers and taxi drivers are giving investment advice. It looks insane. Trading volumes are off the charts. Prices are jumping, but there’s already a sense of uncertainty in the overall trend. The battle between bulls and bears is becoming fierce. Experienced investors are slowly starting to sell. Do they know something?

Phase of decline

Crash. Fast and merciless. Newcomers are panicking. Sales accelerate the decline. In just a few months, cryptocurrencies lose up to 80-90% of their value. Nightmare. In such times, it is so difficult to remain calm. Emotions are running high.

The smart strategy seems simple: buy in the accumulation phase, sell during distribution. But it's easier said than done. The DCA strategy can help. It's not perfect. But it works.

Perhaps the most important thing for an investor in 2025 is to learn to see these phases of the market. Use technical indicators. Do not get lost. Conduct your own research. And, it seems, the most difficult thing is not to succumb to emotions when the entire market is in turmoil.