Cycle Analysis

Definition ∞ Cycle Analysis is a method of studying market behavior by identifying recurring patterns or phases. This analysis posits that financial markets, including those for digital assets, tend to move in predictable cycles driven by various economic, psychological, or technological factors. Identifying these cycles aims to forecast future market trends and price movements.
Context ∞ Cycle analysis is frequently discussed in relation to Bitcoin and other cryptocurrencies, particularly concerning market tops and bottoms. Analysts often debate the validity and predictability of specific cycles, such as halving cycles or broader economic cycles, as they pertain to the long-term valuation of digital assets.