When looking at any market, the
most important thing one needs to grasp firmly, understand and identify is the different stages of the market cycle.
btc crypto eth
It's the first stage of the cycle; large operators, funds, banks, other institutions or even large individuals traders buy without alerting the public to their intentions. These players buy slowly and generally passively over a long period of time to build...
their positions. The public is unaware of what is going on; the market is off the radar and out of the public focus while under accumulation.
2. Markup-The classic uptrend. At this point, the public becomes aware of the price movement, and their buying serves to propel prices higher. Smart money players who bought in the accumulation phase may sell some of their holdings into the strength of the uptrend, or they may..
just hold and wait for higher prices.
3. Distribution- Eventually, the uptrend ends and the market enters a distribution phase in which the smart money players sell the remainder of their holdings to the public, who are still generally anticipating higher prices. Really smart money players might even sell more than…
they own and go short in this range.
4. Markdown-The downtrend that follows distribution. Smart money players who are short will buy back some of their shorts into this weakness. Eventually, the public realizes that higher prices are not in their future, so they panic and sell their positions.
This panic, more…
often than not, marks the end of the downtrend.
Like Retweet.This post is based on this twitter thread.