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Trading Insight_DN
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What is accumulation in crypto investment? Why is it necessary and important for cryptocurrency investors? This is a very difficult problem that causes many investors to lose money due to haste.
Accumulation can be quickly understood as a phase where prices move sideways within a narrow range. After experiencing a strong decline or a significant increase, the market needs time to balance and absorb the factors causing those strong price fluctuations.
The accumulation phase is extremely uncomfortable for most investors, especially for fast traders. Because when the accumulation phase begins, trading volume decreases, and the buying and selling sides are being balanced. The market is absorbing news or pump and dump factors. Therefore, prices often run very slowly and briefly, causing frustration, irritability, and leading to wrong decisions.
🔹 Why is there an accumulation phase in every wave? Why is it necessary?
Because there is no market that always goes up or always goes down. Each cycle, each wave needs to absorb supply and demand and distribute to the correct value at each stage.
- The accumulation phase helps filter out impatient, hasty investors leading to short selling.
- Accumulation allows long-term investors, whales, and institutions to have the opportunity to invest steadily, laying the foundation for a strong upward trend.
🔸 Without accumulation, the market would rise and fall very quickly and strongly. It's easy to get caught at the top, easy to experience strong sell-offs, and face false pumps. There is no specific trend.
In simple terms, accumulation is when the market rests and regains strength before entering a new trend.
Have you planned for the accumulation phase yet?
Accumulation can be quickly understood as a phase where prices move sideways within a narrow range. After experiencing a strong decline or a significant increase, the market needs time to balance and absorb the factors causing those strong price fluctuations.
The accumulation phase is extremely uncomfortable for most investors, especially for fast traders. Because when the accumulation phase begins, trading volume decreases, and the buying and selling sides are being balanced. The market is absorbing news or pump and dump factors. Therefore, prices often run very slowly and briefly, causing frustration, irritability, and leading to wrong decisions.
🔹 Why is there an accumulation phase in every wave? Why is it necessary?
Because there is no market that always goes up or always goes down. Each cycle, each wave needs to absorb supply and demand and distribute to the correct value at each stage.
- The accumulation phase helps filter out impatient, hasty investors leading to short selling.
- Accumulation allows long-term investors, whales, and institutions to have the opportunity to invest steadily, laying the foundation for a strong upward trend.
🔸 Without accumulation, the market would rise and fall very quickly and strongly. It's easy to get caught at the top, easy to experience strong sell-offs, and face false pumps. There is no specific trend.
In simple terms, accumulation is when the market rests and regains strength before entering a new trend.
Have you planned for the accumulation phase yet?
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