A left-sided or left-translated cycle in the cryptocurrency market refers to a pattern observed in the price movement of a digital asset with a notable increase in value that happened earlier than expected (i.e., the peak shows up on the left of the chart). This can be followed by a significant drop.
This pattern is characterised by a steep rise in price (left side of the cycle), often fuelled by market speculation, hype, or other factors driving demand. However, after reaching a peak, the price experiences a sharp decline (right side of the cycle), leading to a correction or bearish trend. The cycle typically has a longer period of decline or a less pronounced upward movement on the right side of the cycle.
Left-translated cycles are commonly associated with market bubbles or speculative frenzies, where the rapid price increase is not sustainable in the long term. Traders often try to capitalise on these cycles by buying low during the correction phase or selling before the price peaks to avoid losses during the subsequent decline.
Understanding left-translated cycles is important for traders in the cryptocurrency market, as it can help them identify potential market trends, assess risk levels, and make informed decisions about buying or selling digital assets.
