The Bitcoin 4 year cycle is a repeating pattern that has been observed in the price of Bitcoin since its inception. The cycle is characterized by four distinct phases: accumulation, markup, distribution, and markdown.
In the accumulation phase, Bitcoin is generally undervalued and slowly accumulates in the hands of long-term investors. This phase is typically marked by low volatility and low volume.
As more people become aware of Bitcoin and its potential, demand starts to increase and the price begins to rise. This phase is known as the markup phase.
During this phase, volatility and volume increase as investors buy up Bitcoin.
At some point, demand starts to outpace supply and the price begins to plateau or even fall. This is known as the distribution phase.
During this phase, large investors sell off their holdings, leading to increased volatility and lower prices.
Finally, the markdown phase is characterized by a further decrease in price as investors lose faith in Bitcoin and sell their holdings. This phase is typically marked by high volatility and low volume.