🔹 FINAL STAGE — POSITIONING & LONG TERM

📌 Day 28/01 - 27/30

WHY UNDERSTANDING CYCLES MATTERS MORE THAN PREDICTING PRICES

Many of us enter the crypto market trying to predict:

• the exact bottom

• the perfect top

• the next move

In practice, predicting prices RARELY defines good results.

What really makes a difference is understanding what phase of the cycle the market is in.

🧠 What are cycles in the crypto world?

The crypto market moves in clear cycles (OR USED TO!!!):

• periods of euphoria

• correction periods

• accumulation periods

• expansion periods

Each phase requires:

• different decisions

• different risk levels

• different expectations

📌 The common mistake is to act the same way in completely distinct cycles.

❌ Where most of us tend to go wrong:

🔹 Buying euphorically thinking it's the beginning

🔹 Selling in panic thinking it's the end

🔹 Waiting for upward behavior in a lateralization phase

🔹 Ignoring that time is also part of the investment

Those who don’t understand cycles always end up:

• delayed in decisions

• frustrated with results

• reacting to the market instead of positioning oneself

🔍 How to recognize cycles in practice? In a nutshell:

Recognizing is identifying in which phase the market is based on some signals.

🔹 Accumulation (beginning of the cycle)

  • Price moving sideways for a long time

  • Low volume

  • Little interest and almost no one talking about crypto

🔹 Expansion (mid-cycle)

  • Price starts to rise consistently

  • Volume increases gradually

  • Narratives start to gain strength

🔹 Euphoria / Distribution (end of the cycle)

  • Fast and almost vertical rises

  • Very high volume

  • "Everyone" talking about the same topic

  • Many beginners entering

🔹 Correction / Drop

  • Strong drops

  • Volume decreases again

  • Frustration and general disinterest

📌 Each phase requires different decisions.

The mistake is to act as if the entire market is always at the same moment.

🧩 Conclusion

It’s not about getting prices right but about understanding the moment.

Those who respect cycles make more rational decisions and suffer less from short-term noise.

🧭 FINAL PHASE — FOLLOW-UP (23 to 31/01)

✅ 23/01 – Long-term strategy is not waiting forever (Day 22/30)

✅ 24/01 – When reducing position is also an intelligent decision (Day 23/30)

✅ 25/01 – Why diversifying is not spreading money (Day 24/30)

✅ 26/01 – Risk vs return: where most people go wrong (Day 25/30)

✅ 27/01 – Liquidity matters more than it seems (Day 26/30)

✅ 28/01 – Why understanding cycles matters more than predicting prices (Day 27/30)

⬜ 29/01 – Capital management: what almost no one learns in crypto

⬜ 30/01 – What would I do differently if I were starting today

⬜ 31/01 – What really matters after 30 days of study (Day 30/30)

❗ Educational content. Not an investment recommendation.

Previous post on 27/01: 26/30