Cycle Accumulation Phase

Definition ∞ The cycle accumulation phase refers to a period within a market cycle where an asset’s price stabilizes or declines, leading to increased buying by long-term holders. During this phase, market sentiment is often neutral or bearish, allowing discerning investors to acquire assets at lower valuations. This stage typically follows a significant price correction and precedes a renewed upward trend. It is characterized by reduced volatility and a gradual transfer of supply from weaker to stronger hands.
Context ∞ News analyses of cryptocurrency market cycles often highlight the accumulation phase as a strategic period for investors. Observing on-chain metrics for accumulation patterns helps market participants identify when this phase is occurring. A sustained accumulation phase can indicate a solidifying base for future price advances, providing valuable context for market outlooks.