Markets tend to move in a cyclical trajectory, marked by 4 phases. First is the accumulation phase where the market has bottomed and is marked by early investors seeing an opportunity to buy assets cheaply or jump on a growing trend. Next is the mark-up phase, where the market seems to have leveled out and the early majority is jumping on the bandwagon (while the initial investors from the first phase are wisely cashing out). Third is the distribution phase, where sentiments shift from mixed to bearish, prices are unstable, the buy/sell ratio skews towards sell, and the end of the cycle is within sight. And lastly, the mark-down phase, where those holding on to their investments are trying to sell to salvage their previous positions and the early investors begin looking for signs of a bottom to get back in.