Why fear phases in Bitcoin cycles matter more than hype phases

Right now Bitcoin and risk assets in general are under pressure. Liquidity is tighter, volatility is higher, and sentiment has clearly shifted from optimism to caution.

Historically, these phases have been part of almost every Bitcoin cycle.

During strong corrections, short-term holders tend to sell at a loss, leverage gets flushed out, and volatility spikes. It feels chaotic in the moment, but structurally this is often where markets reset.

What’s interesting to me is how sentiment usually shifts long before price does. Fear tends to peak near local bottoms, while confidence often returns much later.

Not saying this is a bottom or that price can’t go lower. Just observing how sentiment cycles have lined up with market structure in previous periods.

How are you personally evaluating this phase: Is this normal cycle volatility, or do you see signs of something structurally different this time?