Market Cycle Phase

Definition ∞ A market cycle phase refers to a distinct period within the recurring patterns of price movements in financial markets, including digital assets. These phases typically include accumulation, markup, distribution, and markdown. Each phase is characterized by specific investor behavior and trading volumes.
Context ∞ Identifying the current market cycle phase is crucial for investors and analysts to anticipate potential price action and manage risk. Digital asset markets often exhibit pronounced cycles influenced by technological developments, regulatory news, and broader economic trends. Understanding these phases helps in interpreting current market events and forecasting future conditions.