Definition ∞ Cycle driven traders are market participants who base their trading decisions on the identification and anticipation of recurring market patterns or economic cycles. These traders analyze historical price movements, economic indicators, and asset-specific trends to predict future price behavior. Their strategies often involve entering positions during perceived accumulation phases and exiting during distribution phases. This approach seeks to capitalize on predictable market rhythm.
Context ∞ In cryptocurrency news, discussions about cycle driven traders often relate to analyses of Bitcoin’s halving events, broader market sentiment shifts, or seasonal trends in altcoin performance. Reports may highlight how these traders position themselves in anticipation of bull or bear market cycles, influencing short-term price volatility and long-term market structure. Understanding their behavior helps interpret market commentary and potential future movements in digital asset prices.