Definition ∞ The BTC Accumulation Phase refers to a period when investors gradually acquire Bitcoin, often following a significant price decline. This stage typically involves larger entities or long-term holders increasing their positions, indicating a belief in future price appreciation. It is characterized by sideways price movement and relatively low volatility, as selling pressure diminishes and buying interest slowly absorbs available supply. On-chain metrics frequently show coins moving from exchange wallets to private storage during this interval.
Context ∞ Understanding the BTC Accumulation Phase is crucial for interpreting market sentiment and potential future price movements reported in crypto news. Analysts closely monitor indicators such as exchange balances and wallet activity to ascertain if Bitcoin is entering or exiting such a period. The duration and strength of this phase can provide signals about the underlying conviction of market participants regarding Bitcoin’s long-term value.