Cryptocurrency markets exhibit some of the most extreme cyclical behaviour of any asset class. Understanding the cycle and applying technical discipline within it is the most evidence-based framework available to crypto investors.
**The four phases of the crypto cycle**
1. **Accumulation**: After a prolonged bear market, prices stabilise at low levels. Volume is low. Most retail participants have sold in despair. Technically, RSI often stays in the 30–50 range; price consolidates below key moving averages.
2. **Mark-up (bull phase)**: A catalyst — often tied to Bitcoin halving, regulatory clarity, or macro conditions — triggers institutional buying. Price breaks above the 200-day MA; RSI climbs above 60; MACD makes a bullish crossover.
3. **Distribution**: Price reaches new highs or approaches old ones. Euphoria peaks. RSI enters overbought territory (70+) and shows divergence (price makes new highs, RSI does not). Volume climbs dramatically. Larger holders sell into strength.
4. **Mark-down (bear phase)**: Price breaks below key support levels. The 50-day MA crosses below the 200-day MA (the "death cross"). RSI stays below 50. Each rally is sold.
**Bitcoin dominance as a macro signal**
Bitcoin's share of total crypto market cap (BTC dominance) is a useful macro indicator. When dominance rises, capital is rotating into Bitcoin (risk-off within crypto). When dominance falls sharply, capital is flowing into altcoins (risk-on within crypto, often mid-bull market).
**Applying the tools on investing.linigu.com**
All top 200 cryptocurrencies are tracked with daily candlestick charts and full technical analysis. Key indicators to watch on any crypto asset:
- Position relative to MA200 (bullish above, bearish below)
- RSI trend and divergence
- MACD histogram crossing zero
- Volume profile on breakouts
*Cryptocurrencies are highly volatile assets. Position sizing and risk management are more important in crypto than in any other asset class. This is not investment advice.*