Accumulation Phase Entry

Definition ∞ Accumulation phase entry describes the point at which market participants begin acquiring an asset, typically after a prolonged downtrend. This period is characterized by sideways price movement and increasing buying interest from informed investors. It indicates a potential shift from a bearish market sentiment to a more neutral or bullish outlook. Volume patterns often show subtle increases during this phase as demand gradually builds.
Context ∞ Understanding accumulation phase entry is crucial for identifying potential market reversals in cryptocurrency news. Analysts often watch for on-chain indicators, such as a rise in the number of addresses holding an asset or significant transfers from exchanges to private wallets, to confirm this activity. News reporting on these metrics helps gauge the underlying strength of a digital asset’s price floor and its readiness for an upward trajectory.