Definition ∞ An accumulation period is a market phase where investors steadily acquire an asset. This phase typically follows a substantial price correction, during which sophisticated market participants systematically purchase a digital asset, often without causing rapid price increases. It signifies a shift in market dynamics as demand gradually absorbs available supply, laying groundwork for potential future upward price movement. On-chain analysis frequently identifies this period through sustained increases in wallet holdings by long-term holders.
Context ∞ Discussions surrounding accumulation periods in crypto news often focus on identifying early signs of a market bottom or a reversal in trend. Analysts debate whether current market behavior indicates a genuine accumulation phase by significant holders or merely temporary consolidation. Monitoring on-chain metrics like wallet activity and exchange balances provides crucial insights into whether assets are being actively accumulated or distributed.
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