If you like this content, I would greatly appreciate it if you guys liked the video and subscribed to my channel. It helps make these videos worth it going forward. Hey guys Altcoin Sherpa here with a video today on what the accumulation is in the market. As always, this is not financial advice. I am not professional trading is risky. You do your own research
today I wanted to talk to you guys about what accumulation is specifically uh for the bottom in crypto and what to look for so to begin. What is accumulation is generally when the price goes into a tight range and generally does not deviate uh from this range for a larger period of time. You can see accumulation occurring across all different types of I’m sorry all different time frames, and typically speaking, the longer the accumulation range, the larger the expansion that follows, so here was the accumulation bottom of bitcoin USD at the end of 2018 at the market bottom around uh three thousand dollars um firstly you know we ask yourself why is their accumulation patterns generally it’s because big players need to fill their bags or need to buy a specific asset without moving the market too much so you’ll see price just basically ping-ponging in a range a tight range and price is not really moving, and this is usually people filling their bags bigger players.
they’ll generally be buying in these situations uh and when the time is right, and they’re ready to uh distribute, that’s when the price starts to move now; it’s important to understand that accumulation bottoms generally don’t start until there’s a capitulation big move so for instance here was the big move here uh from the six thousand dollar floor that bitcoin had in 2018 and obviously anybody that traded crypto in 2018 they thought it was a miserable experience at least I did um so generally speaking for the price to start ranging it needs to have this big capitulation shakeout big move before this happens that that’s when you start to see a range from at the bottom now it’s also important to understand the context as well uh I’ll go into some other detail I’m sorry some other examples of accumulation periods in highly bullish assets such as theta but for now uh given this market structure context.
I do have a video on market structure so check that out it’s basically what is the market structure uh in terms of higher highs and higher lows and in this context here of bitcoin usd in 2018 the market structure was clearly bearish with lower highs and lower lows and therefore you needed to see one last shakeout which we saw before a large accumulation range so as i said before an accumulation range a bottom is where price ranges and does not move for a certain period of time and when bigger players or whales or whatever you want to call them have uh an ample amount of whatever asset they want that’s when they start to distribute and expand so what are some key signs of an accumulation bottom generally speaking you want to look to see that price is in a tight range and you can see this here where price basically did not move at all it kept tapping this top of this range and it kept going back down to the bottom of the range and what was interesting to see too was that you start to see if you go down to lower time frames you can start to see a lot more by volume coming in that’s typically a sign of accumulation where you’ll see a lot of buy volume come in and the price is not moving that is generally an indication of accumulation.
BTC USD generally
so as i said before the longer the accumulation period the more explosive the expansion as for this example i mean bitcoin went from basically three thousand dollars all the way up to fourteen thousand in 2019 and this was a massive run uh that was obviously really really nice to see so this is an example on BTC uh USD BTC USD generally has these types of accumulation bottoms and you can see them too in previous price history as well the covid crash in 2020 of march this was a v-shape reversal and you typically don’t see that as much but let’s also go into accumulation in a bullish market structure you could see that again in the summer price ranged here for many months and this was bullish accumulation here you could have argued that this might have been similar context to 2018 but given the way that price spiked down and gathered all this liquidity uh i was fairly bullish in the uh in this area because i thought that price was going to keep going higher after the way that price reversed in march.
so we’ll see more examples of here of accumulation in bullish market structure context such as theta later on, but here was another example of BTC USD accumulation during the summer move up a little more accumulation and every range isn’t necessarily accumulation it’s important to understand that, and it’s important to understand the market structure context, for instance, uh this right here in my opinion clearly showed that this was a bullish market structure at this point because uh this was the high and low and higher high this at this point when we hit twelve thousand dollars that that confirmed a bullish market structure to me, so every range is not necessarily going to be accumulation uh so, for instance, this range here in 2018 this was not accumulation um you know given the context of the market structure, so it’s important to understand that there ETHUSD I don’t remember oh okay yeah.