Definition ∞ A mid cycle reset refers to a significant price correction or consolidation phase that occurs during the middle stages of a broader cryptocurrency market cycle. This event often serves to rebalance overheated markets, shake out speculative positions, and allow for renewed accumulation before the cycle continues. It is distinct from a full bear market, typically being a sharper, shorter adjustment within an ongoing trend.
Context ∞ Cryptocurrency news often reports on a mid cycle reset to explain periods of unexpected price volatility that do not signal a complete market reversal. This concept provides important context for understanding why an asset might experience a substantial drawdown even within a generally bullish period. Analysts frequently examine on-chain data during these resets to identify if long-term holders are accumulating, indicating a healthy market adjustment.
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