The digital asset market has experienced significant growth over the past week, with the Federal Reserve's FOMC meeting on October 18th acting as a pivotal moment. The unexpected rate cut of 50 basis points was well-received by investors, sparking a renewed wave of optimism.

The current technical structure suggests a potential shift into a Wyckoff accumulation pattern, where institutional investors discreetly accumulate assets at favorable prices, mitigating selling pressure from less resilient market participants.

Dow theory, traditionally used for stock market analysis, can also be applied to digital assets. It divides market movements into three phases: accumulation, absorption, and distribution. Bitcoin's price history over recent years aligns with these phases, with 2022 marking a distribution cycle that led to a technical inflection point at the start of 2023.

Bitcoin's realized price has shown a steady increase, reaching $31,722.37, indicating that most investors are in profit. The past year represented an accumulation phase, culminating in a distribution cycle in 2024. As bitcoin finds technical support, it may enter a re-accumulation phase, potentially aiming for six-figure valuations.