PRICE CYCLE OF CRYPTO
The life cycle of cryptocurrencies can be characterized by three phases; Accumulation, Uptrend and Distribution.
In the accumulation phase, early adopters of a particular cryptocurrency acquire units usually at a discount. In the uptrend phase, increased popularity drives gradual demand for the crypto in question and prices rise to form an all-time high.
In the distribution phase, early adopters offload large quantities of the #crypto driven by caution and/or profit-taking. Usually, this action causes a price to collapse forming a downtrend. At this point, the price can mature and head in whatever direction driven by fundamental supply and demand.
These cycles present trading opportunities to experienced traders. The collapse in price in the third phase usually creates disequilibrium in the market where the price must return to clear the imbalance and settle the market at equilibrium.
For #AXSUSDT , the price collapsed leaving unmitigated supply zones marked as profit targets. On the daily chart, we have a bullish change of character indicating there are signs of a bullish reversal. After the change of character, the price retraced back to the demand zone to collect buy orders. One such buy order is located at the 3.66 price level where we have placed our buy limit. Our short-term take profits and long-term take profit lies at 10.7 and 44.9 respectively. We are monitoring this crypto to add it to our long-term #Copytrading portfolio on #Binance
