Theory.
I will explain it in detail later, and I encourage anyone who strives to learn analysis to read about it thoroughly because it will literally elevate you to a much better level.
The key points of this theory that I will explain in detail later as shown in the image:
🪙 At the bottom of the image, we have the term Accumulation Area, which is an excellent area for buying, and here we have cryptocurrencies that I mentioned earlier still in the accumulation phase like $AVAX.
🪙 The next phase is called the Mark Up phase, during which financial institutions and whales stop quiet accumulation and start buying significantly, causing the market to rise due to the availability of large liquidity. By the way, we have not yet witnessed this phase, and even in March 2024, I don't think it was a real upward period.
🪙 The third phase is when whales start to exit, that is, selling but in stages so that the remaining traders do not feel the significant drop that awaits them and think it will rise again. This phase is called the Distribution Area.
🪙 The final phase is the Mark Down phase, during which people realize that the market will not rise, and they begin to sell out of fear.
How do we identify these phases on the chart? This is what I will explain here soon, and I apologize for the length :)