So, if you haven't noticed, Bitcoin tanked pretty hard today, and the rest of the market with it.

The Cypto Cycle

I started trading this year, and I'd like to make a few speculations on the cryptocurrency trading cycle. I'll sum up the steps here, and then go into detail:

1. Birth/ICO phase: defined by hype, excitement, prices go up!
2. Uncertainty/unpredictability phase : prices go up and down, maybe for MONTHS
3. Sudden upward spike: for some unknown reason, prices explode for days, even weeks! Millionares are made!
4. Hype phase!!-- latecomers hear about friends getting rich with bitcoin, buy at the peak, prices go up...
5. Correction, uncertainty phase-- prices start to waver up and down as people start selling to make profit..
6. CRASH phase -- prices go DOWN as people sell to make their profit
7. Correction phase-- prices start to go back up, but not as high as before...
8. Uncertainty/unpredictability phase --prices go up and down for weeks or MONTHS as people are uncertain

Since this is a cycle, it repeats again and again.

Here is our most recent Bitcoin phase: