TA Analyst – Flash

Check him out on Twitter – @FlashXBT

There are mainly two phases in the market cycle which is accumulation and distribution. Price trades sideways during these phases before breaking up or breaking down and changing the trend. So what is accumulation and distribution

Accumulation –

The definition of Accumulation is – The act of buying more crypto of a security without causing the price to increase significantly. After a decline, a crypto may start to base and trade sideways for an extended period. While this base builds, well-informed traders and investors may seek to establish or increase existing long positions. In that case, the crypto is said to have come under accumulation.

Distribution – 

The systematic selling of a crypto without significantly affecting the price. After an advance, a crypto may start forming a top and trade sideways for an extended period. While this top forms, a crypto  may experience distribution as well-informed traders or investors seek to unload positions. A quiet distribution period is usually subtle and not enough to put downward pressure on the price. More aggressive distribution will likely put downward pressure on prices.

SO what happens after accumulation? The price starts to break the resistances and starts going up. And what happens after distribution? The opposite. The price starts declining.

Coins which are in accumulation right now. 

XLM/BTC

NANO/BTC –

 

TRX/BTC – 

 

 

XMR/BTC – 

 

XEM/BTC

 

What happened to the coins which broke out of the accumulation phase?

 

ICX/BTC –

 

ZIL/BTC – 

 

Do note – This is not financial advice, please conduct your own research.

 

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