After the phase of aggressive buying from bigger entities during this bear market, we are now rather in the phase of distribution.
 |
Most certainly every bear market is marked by some large amount of accumulation of the bottom because that is why we call it the bottom and why the bottom was formed there, people bought a lot there. Mostly the buyers around those levels are larger entities too as in bear markets most of retail leaves and only a few like us remain but we do not nearly have enough buying power to collectively move prices. This phase where Whales buy a lot is actually probably over now. We can take that from the on-chain metric called Accumulation Trend Score (ATS) this metric represents the size of the entity itself and the size of the purchase made by the entity, on a scale of 0-1. 0 means that larger entities and not buying right now and are rather distributing. This usually happens after the bottom has formed and those whales are now taking profits. This is the ATS and it shows how the recent rally has flipped us into the distribution zone out of the accumulation zone of whales we had during the LUNA and the FTX implosion. A distribution zone during a bear market in the past has happened after the bottom usually. Many may say that we also had it during August last year even though we went lower, but the reason for us going lower was a black swan event. Thus it is possible. that we are in similar situations now but I would rather compare us to the post-Covid crash as FTX and Covid were both back swan events that made new local bottoms that did not fit many previous observations of bottoms and were unusual. So it is possible that we are in the same situation right now as in Summer 2020. submitted by /u/partymsl |
