Definition ∞ A deep accumulation phase describes a period in market cycles where a significant volume of an asset is acquired by participants, often at lower price levels, following a sustained downturn. During this phase, selling pressure diminishes, and buyers steadily absorb available supply without causing substantial price increases. This activity suggests a growing conviction among holders regarding the asset’s future value. It often precedes a market recovery or upward price trend.
Context ∞ Reports of a deep accumulation phase in a digital asset’s market data are frequently interpreted as a positive indicator for future price appreciation. Analysts monitor on-chain metrics and trading volumes to identify such periods, which can signal the conclusion of a bearish market cycle. This behavior reflects strategic positioning by informed participants expecting long-term growth.
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