The digital asset market has experienced notable growth over the past week, catalyzed by the Federal Open Market Committee's (FOMC) decision on October 18th to cut interest rates by 50 basis points. This unexpected move was well-received by investors, sparking renewed optimism.

The current market structure suggests a potential shift into a Wyckoff accumulation pattern, where institutional investors, often referred to as "smart money," discreetly purchase assets at favorable prices, mitigating selling pressure from less resilient market participants.

To better understand these market dynamics, the Dow theory can be applied. This theory, traditionally used for stock markets, divides market movements into three phases: accumulation, absorption, and distribution. Bitcoin's price movements over recent years align 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, currently at $31,722.37, indicates that the majority of investors are in profit. The past year has been an accumulation phase, transitioning into a distribution cycle in 2024. As bitcoin finds technical support, it is likely to enter a re-accumulation phase, potentially pushing its value towards six figures.