Welcome to episode 6 of Trading Crypto!
In this episode, we’re going to talk about which phase of the market we are currently in.
The market can be divided into four distinct phases: accumulation, mark-up, distribution, and mark-down.
Accumulation is the first phase of the market cycle, where smart money accumulates a large amount of an asset. During this phase, the asset is typically undervalued and underappreciated by the market.
The second phase is mark-up. During this phase, the asset has been identified as undervalued and is beginning to be bought up, driving the price up.
The third phase is distribution. During this phase, the smart money that was accumulating starts to sell off their position, causing the price to start to decline.
The final phase is mark-down. During this phase, the asset is more broadly identified as being overvalued and is sold off, causing the price to decline further.
So which phase of the market are we in now?
It depends on the asset. Different assets are at different stages of the cycle. Some assets may be in the accumulation phase, while others may be in the mark-up phase.
It’s important to pay attention to the phase of the market and identify which phase each asset is in. This will help you to make better trading decisions.
Thanks for watching!
