BTC Accumulation Zone

Definition ∞ A BTC accumulation zone describes a price range where significant buying activity occurs, often by long-term holders, following a period of decline or consolidation. Within this region, market participants perceive Bitcoin as undervalued, leading to sustained acquisition rather than distribution. This phase typically precedes a market recovery or upward price movement.
Context ∞ Analysts often reference BTC accumulation zones when discussing potential market bottoms or periods of strategic investor entry. Monitoring on-chain metrics related to wallet activity and exchange flows helps identify these zones, providing insights into prevailing market sentiment and future price trajectory.