Why does the market hit plateaus during a bull run?

Is there such thing as bearish bulls? I feel We are in that phase. But something will happen that makes digital currency shoot up again.

Idk. What gives with this current plateau?

1. Profit-Taking

First off, let's talk about profit-taking. A lot of whales and retail investors alike start to cash out some gains. They've seen massive pumps and want to secure the bag. When big players take profits, it can create sell pressure, slowing down the momentum.

1. Market Sentiment

FOMO can only last so long before people start to feel a bit jittery. After a significant run-up, some investors get cautious, expecting a correction. This leads to a wait-and-see approach, causing the market to cool off.

1. Institutional Involvement

Institutions aren’t apes like some of us. They’re strategic and often move in phases. They'll pump in capital, wait for the market to react, then reevaluate. Their trades aren’t as emotional but more calculated, contributing to these stagnant phases.

1. Regulatory News

Sometimes, regulatory news or even rumors can cause uncertainty. When there’s talk of new regulations or government scrutiny, even in the middle of a bull run, it can create hesitation among investors.

1. Over-leveraged Positions

During a bull run, a lot of traders get greedy and leverage up. If the market starts to dip even slightly, margin calls and liquidations can flood the market, causing stagnation or even sharp drops.

1. Seasonal Trends

Crypto has its seasons. Historically, certain times of the year are more bullish or bearish. Sometimes, a stagnation period is just the market catching its breath before the next leg up.