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Bitcoin Accumulation Zone

Definition

A Bitcoin accumulation zone is a price range where long-term investors tend to purchase Bitcoin in anticipation of future price appreciation. This zone typically follows a significant price decline or extended sideways movement, indicating a period where selling pressure subsides and buying interest from patient holders increases. On-chain analysis often identifies these periods by observing a rise in the number of wallets holding Bitcoin for extended durations, suggesting conviction in its long-term value. It represents a phase of market consolidation before a potential upward trend.