The various phases of the crypto market on a real price chart

Accumulation Phase

This is first phase of the market cycle. This is called the accumulation phase because of it is the time that the whales accumulate coins and load their bags with large quantity. In this phase, the market might move horizontally and fluctuate up and down. As the whales continues to buy gradually by buying at different price levels, the market only moves up slowly. From the chart, the whales began to accumulate at the $0.2263 price point, the price began to slowly increase.

Uptrend Phase

In this phase which is the second phase, the small investors have noticed that the price is moving up. They begin to buy as well. There are more demand in the market, the selling force is suppressed as demand surpass supply, the price continue to increase. As more investors enter the market, the price continues to rise, attracting even more investors. Fear of missing out sets in. The whales who bought so many coins are not selling and waiting for the right time to take profit. The chart shows that the price of ENJ went all the way up to $2.6693.

Distribution phase

This is the third phase of the market cycle. In this phase, the whales who accumulated a lot of coins are in big profits already, and it is time to take profit. The whales start to take profit by selling some of the coins. The whales began to take profit at $3.5484 price point. The New investors who enter the market late buy these coins. The price begin to slowly to diminish, the selling pressure from the whales push the price down. The market might move up and down in the distribution phase. The whales began to take profit at $3.5484 price point.

Downtrend phase

This is the fourth and final phase of the market cycle. It is at this phase that the market confirms that it is bearish. The whales have sold all their coins and is waiting for the next accumulation phase. Panic enter the market, small investors are also selling their coins due to fear and the price continue to fall.

Still on the ENJ/USDT chart, I have indicated the points where I will begin to buy my coins and the point where I will begin to take profit.

The first phase is my accumulation phase where I will begin to accumulate. The accumulation phase begins when the price of ENJ is still low, I will be buying the coins at different price points so as not to cause the price to rapidly increase.

The second phase is the uptrend. When the market enters an uptrend, I will not take profit immediately, I will hold on to my coins and observe the market carefully.

The third phase is the distribution phase. This is the phase where I will begin to take profit. I will begin to take profit by selling my coins and distributing it to other new investors who enter the market late. On the chart, I indicated the point where I will begin to take profit.

The fourth phase is the downtrend. At this point, I have taken profit. After selling my coins, the market will slowly enter a panic and the selling pressure overcomes the buying pressure. I have made so much profit and will watch the price drop. More investors begin to sell as well, the price keeps falling down, I will carefully observe the market to know when to begin to accumulate again.

Conclusion

The cryptocurrency market is heavily surrounded by the whales who are simply big investors in the cryptocurrency market. The whales are the major players in the market. They are the big investors who invest a large amount of money to acquire a large amount of coins. Because of this, they are able to move the market. In some markets, whales have the capability to manipulate prices in the market because of their huge influence. Because of their influence, they are considered market makers. As always, the main goals of the whales is to enter the market and buy at low prices, and exit the market and sell at high prices.