During cryptocurrency all-time high (ATH) moments—an event many wish for—market dynamics often follow a predictable pattern. These tops are usually marked by a lack of liquidity, as demand spikes and sellers become scarce. However, once the ATH is reached, a new top rarely appears immediately. Instead, the market usually enters an extended bear phase, lasting 2-3 years, while excess leverage is removed and participants adjust to lower values.

This cyclical nature of the market highlights the importance of strategic profit-taking during strong bullish impulses. Waiting for the very top-of-the-market movement - where liquidity disappears - can leave traders without the ability to effectively exit their positions.

Content creator on /paragraph, based on Farcaster. Community manager, 🎩True DEGEN

Strategy for market cycles in 2025:

In future bull markets, especially during 2025, it will be wiser to withdraw profits gradually:

1️⃣ Focus on impulses: Target profits during a strong upward swing, such as 2-3 connected green weekly candles.
2️⃣ Avoid greed: Chasing the absolute top of the movement often leads to missed opportunities due to liquidity traps.
3️⃣ Understand liquidity risks: As the price rises towards local peaks, fewer buyers remain at those levels, which makes it difficult to effectively close positions.