Definition ∞ A crypto accumulation phase is a market period where assets are steadily acquired by investors, often without significant price increases. This period typically follows a market downturn or consolidation, characterized by institutional and retail investors gradually buying and holding cryptocurrencies. Transactions during this phase often involve larger entities transferring assets off exchanges into cold storage, indicating a long-term holding outlook. Price movements are usually range-bound, reflecting a balance between persistent buying and diminishing selling pressure.
Context ∞ Market participants closely watch for signs of a new accumulation phase, as it often signals the foundation for a future price recovery or bull market. On-chain data, such as exchange balances and wallet activity, provides crucial indicators for identifying these periods. The strength and duration of an accumulation phase are critical factors in assessing the potential for subsequent upward price trajectories.
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