Bitcoin Cycle Mechanics: Compression Before Expansion?

There’s a recurring rhythm in $BTC that many overlook:
Roughly 1 year of contraction → followed by ~3 years of expansion.
Not perfectly timed.
Not mechanically identical.
But structurally consistent.
How the cycle typically unfolds:
Phase 1 – Cleanup
Price declines. Excess leverage clears. Weak positioning exits.
Volatility compresses near the bottom as liquidity stabilizes.
Phase 2 – Base Formation
Sideways structure. Sentiment remains skeptical.
Accumulation happens quietly while narratives stay muted.

Phase 3 – Expansion
Momentum returns. Higher highs form.
Liquidity expands alongside participation.
New all-time highs develop only after structure confirms.
Now look at the present context.
We’ve already seen a correction phase that reset leverage and sentiment. The question is whether this compression is transitioning into a growth-loading phase — or whether more structural rebuilding is required.
For a true growth phase to begin, $BTC needs:
• Clear higher lows on higher timeframes
• Resistance zones reclaimed with follow-through
• Expanding volume, not thinning liquidity
• Reduced volatility on pullbacks
Cycles are not about predicting the exact week of reversal.

They’re about recognizing phase shifts.
If the contraction has largely completed, the market will start showing it through structure first — not headlines.
Correction phases exhaust participants.
Growth phases reward patience.
Right now, the chart is closer to transition than collapse.
But confirmation always comes from price behavior, not from cycle theory alone.
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