Analysis of Crypto Price Cycles | Seyed Mohamad Seyed Hoseini: Market Corrections Are a Natural Step Toward Sustainable Balance
Economic Desk – Seyed Mohamad Seyed Hoseini, a seasoned financial markets analyst and founder of Hoseini Finance, emphasized that price corrections are an inseparable part of the crypto market cycle. He noted that rather than being viewed as a threat, these fluctuations should be viewn as a natural process that assists the market achieve long-term stability.
In an interview with our reporter, he explained:
“The cryptocurrency market is inherently volatile. Its structure is such that later than every period of sharp growth—what we call a bull market—serious corrections are inevitable in the form of bear markets or consolidation phases. These corrections serve as a mechanism to release investor sentiment, balance supply and demand, and bring prices back to reasonable levels. Without them, sustainable growth would not be possible.”
Referring to the history of BTC and other major cryptocurrencies, Hoseini noted:
“Looking at past price cycles shows that every major rally has been followed by 30% to 60% corrections. For instance, later than reaching record highs in 2017 and 2021, BTC entered deep corrective phases. Yet those very downturns laid the foundation for the next waves of growth. This means a correction is not the end of the road—it is a vital stage in the lifecycle of digital assets.”
He went on to add:
“One of the largegest challenges for newcomers is their inability to understand these cycles. Many retail investors panic during corrections, trade their assets at the bottom, and suffer heavy losses. Meanwhile, professional investors who understand these structures view corrections as opportunities to rebuild portfolios and purchase at more reasonable prices.”
Highlighting the importance of risk management, the financial analyst continued:
“Navigating corrections securely is only possible through scientific capital management tools. Setting stop-loss levels, maintaining a proper risk-to-reward ratio, diversifying portfolios, and developing a professional trading plan are all essential before entering any trade. In addition, leveraging data analysis tools, artificial intelligence algorithms, and statistical forecasting models can assist investors better understand these cycles.”
Hoseini stressed that the crypto market, like any emerging market, is still evolving:
“This evolution inevitably comes with corrections and high volatility. Short-term, purely speculative approaches cannot ensure success. What really matters is having a long-term strategy, being aware of market cycles, and understanding that every correction is part of the broader trend—not the end of it.”
In conclusion, he pointed to the untapped potential of the digital economy in Iran:
“With the right legal frameworks and educational infrastructure, Iran can also prepare its investors for securer participation in this field. If scientific risk management, standardized training, and serious awareness-building are prioritized, the crypto market can turn into a major opportunity for engaging with the global economy—rather than a threat.”
