Thread by @the_coinmaster

1/ HOW TO DETERMINE IF $BTC IS IN ACCUMULATION OR DISTRIBUTION?💰

We will analyse #BTC phase using simple metrics- Price, funding rate & Spread.

As mentioned in previous threads, market alternates from accumulation to distribution. Accumulation is simply a phase where #Bitcoin

2/ demand is sustainable. Asset is usually undervalued & buyers determine price. Buyer domination.

Once accumulation ends, organic demand disappears. Asset becomes overvalued with quick price rise. Sellers determine price. Seller domination.

$BTC #BTC #2020BullRun #Bitcoin

3/ Huge returns can be made if one buys during accumulation & sells during distribution.

Now how to identify the phase?

As seen in below picture, during accumulation, funding rate turns largely negative or slightly positive. Spread (Futures price - Spot price) remains negative,

4/ that is, Spot premium. No major price peaks during this phase.

During distribution, funding stays largely positive & futures trade at premium constantly.

So, constant spot premium is a precursor to organic demand $BTC #BTC #Bitcoin #TA #SP500

5/ Where are we right now?

We have been in accumulation since March. Spot is still trading at premium & funding is slightly positive. Buyers are still in control. #BTC still undervalued.

What next?

At the end of such a huge accumulation, there is usually a price peak. $BTC

6/ will soon pump 🚀🚀🚀. This will happen till price gets overvalued.

Spot demand will reduce & funding rate will turn highly positive. Sellers will gain back control.

ACTION PLAN?

BTFD & HODL are the best strategies right now. ALL DIPS ARE FOR BUYING!
#2020BullRun #BTC $BTC

7/ Wait for the mega pump!!

Keep watching the spread. Once it starts staying positive & funding rate increases, prepare to Sell.

The peak is very near so please buy patiently.

Follow this account to know more updates. I update regularly before major price movements

#BTC $BTC