What are the key differences between the accumulation phase and distribution phase in the context of cryptocurrency trading?

1 answers

• Dec 16, 2021 · 3 years ago
  In the context of cryptocurrency trading, the accumulation phase refers to a period of time when prices are consolidating and trading within a range. This phase is often characterized by low trading volumes and a lack of significant price movements. It is during this phase that smart money investors are accumulating assets at lower prices. On the other hand, the distribution phase is when prices start to decline as more investors sell their holdings. This phase is marked by increased selling pressure and higher trading volumes. Smart money investors take advantage of this phase to distribute their assets to the general market. Understanding the differences between these two phases is crucial for traders to make informed decisions and adjust their trading strategies accordingly.
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