Definition ∞ A Trading Cycle refers to a complete sequence of market activity, typically characterized by distinct phases of price movement, volume changes, and investor sentiment. These cycles often include periods of accumulation, markup, distribution, and markdown, reflecting the ebb and flow of supply and demand. In digital asset markets, trading cycles can be influenced by technological developments, regulatory news, macroeconomic factors, and speculative behavior. Understanding these patterns is essential for participants seeking to identify market opportunities and manage risk.
Context ∞ The discussion surrounding Trading Cycles often involves technical analysis and the search for predictable patterns within volatile digital asset markets. The situation is characterized by both short-term fluctuations and longer-term trends, which can be influenced by broader market narratives. A critical future development involves the refinement of analytical models to better account for the unique drivers of crypto market cycles, providing more robust tools for investors to navigate price movements and anticipate shifts in market sentiment.