I am often asked when is growth going to happen, when is the alt season and how do I know it's about to happen? It's simple - Wyckoff's market phases!📈
It's long been no secret that the market goes in a certain structure. Not just cryptocurrency. Any kind. According to this model, there are 4 phases within which we are constantly moving:
⌛ Accumulation
Sooner or later, on a long-term downtrend, the selling stops. Price goes in a sideways range that lasts from a few months to a few years. In this range, the big players accumulate their positions, and we should too.
📈 Uptrend
After all positions are accumulated, a major player pushes the price up. The upper boundary of the range is broken on increased volume and this indicates the beginning of an uptrend. Optimally, continue to hold your longs on the spot.
📊 Distribution
The phase opposite to accumulation. This is where the big players take profits, slowly, so as not to cause panic. We should start taking profits too.
📉 Downtrend
Breaking through the lower boundary of the distribution range on increased volume. A major player sells off the residuals and exits the market. This is the beginning of the bearish phase in the market. It makes sense to completely close all your long positions and start working with shorts.
Back to the question of how I know we are about to start rising.... We are coming out of the accumulation phase in many altcoins and starting an upward move. Cyclicality, folks!
#altcoins #BlackRock #MicroStrategy #buythedip #ETHETFS $ETH $BNB
