I am often asked: When does the market grow? When does 'alt season' come? And how can we tell it's about to happen? The answer is quite simple – it’s all about the market phases according to the Wyckoff model! 📈

Not just in crypto, but any market moves according to a certain structure. According to this model, there are 4 phases that the market always alternates between:

Accumulation 💧

After a long-term downtrend, selling pressure gradually weakens. Prices move sideways in an accumulation zone, which can last from several months to a few years. During this phase, 'whales' quietly gather their positions, and this is also the time we should accumulate our positions.

Uptrend 📈

When enough positions have been gathered, the 'big players' will push the price up. The resistance level above is broken with high trading volume, signaling the start of an uptrend. At this point, holding spot/long positions is optimal.

Distribution 📈

This is the phase opposite to accumulation. The big players start to gradually take profits, avoiding causing market panic. This is also the time we should begin to take partial profits.

Downtrend 📉

When prices break through the support level of the distribution phase with large volume, it signals that the 'big players' are offloading their positions and selling off the remainder. This marks the beginning of a bear market. At this point, all long positions should be closed, and consideration should be given to switching to a short strategy.