How Accumulation and Distribution Works in Crypto
How Accumulation and Distribution Works in Crypto. Using examples of ELFBTC. Applicable to any coins.
Accumulation is a phase where the price is slowly drifting lower, making lower lows.
Accumulation ends when the price is no longer making new lows, stagnating at a certain range and having very low volatility.
Sometimes there will be spike in volume at this stage because smart money are accumulating and the news got spread to others within the circle.
After accumulation is finished, the beginning of a mark up phase and distribution phase.
And the mark up phase or distribution phase will end with a buying climax where the biggest percentage gain will happen. Price can rise more than 100% in one day.
Based on my observations, depending on the climates of the whole crypto market. The price gains can be as low as 5x from the accumulation price or bottom price to as high as 10x and above.
And after distribution and buying climax, price will crash and will form another based for future accumulation and distribution. The cycle is repeated over and over again.
Rinse rise and repeat.
Accumulation is a phase where the price is slowly drifting lower, making lower lows.
Accumulation ends when the price is no longer making new lows, stagnating at a certain range and having very low volatility.
Sometimes there will be spike in volume at this stage because smart money are accumulating and the news got spread to others within the circle.
After accumulation is finished, the beginning of a mark up phase and distribution phase.
And the mark up phase or distribution phase will end with a buying climax where the biggest percentage gain will happen. Price can rise more than 100% in one day.
Based on my observations, depending on the climates of the whole crypto market. The price gains can be as low as 5x from the accumulation price or bottom price to as high as 10x and above.
And after distribution and buying climax, price will crash and will form another based for future accumulation and distribution. The cycle is repeated over and over again.
Rinse rise and repeat.