Cycle Regime Shift

Definition ∞ A cycle regime shift in cryptocurrency markets denotes a fundamental alteration in prevailing market conditions or trends that indicates the conclusion of one market phase and the commencement of another. This involves a change in the dominant forces influencing price action, such as a transition from a bull market to a bear market, or vice versa. Such shifts are characterized by significant changes in investor sentiment, trading volumes, and asset valuations.
Context ∞ Current market commentary often focuses on identifying early signals of a cycle regime shift, particularly following periods of sustained price movement. Analysts frequently debate whether current market corrections or rallies represent temporary fluctuations or the start of a new long-term trend. Understanding these shifts is crucial for participants seeking to position themselves appropriately within volatile digital asset markets.