In the chart below, BTC’s price fell to as low as 31,000, but with less volume than the previous nosedives, which is a positive signal and can indicate early signs of supply exhaustion. The price then rallies back up to continue the trading range.
Phase C – Spring and Test
This phase is where larger players intentionally sell to sharply drive down the price, pushing weak hands to act in panic and dispose of their assets at low prices.
Usually, the traders will briefly drive prices below the trading range and send them back up as they start buying substantial supply amounts.
During the Spring, the price falls, but not as much as the Selling Climax (phase A). More importantly, volume spikes, showing that large players are heavily accumulating and absorbing supply.
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