💰 Long-term bitcoin holders accumulated over 262,000 BTC (💲15.6 billion) in the last month
While the market is stagnant, big capital prefers to accumulate BTC. We are in a classic phase of redistributionwhich may last through part of the autumn.
At this point, I want to introduce you to a number of concepts and one of the common structures (models) of pricing behavior, called AMD.
This will allow you to understand what is distribution, accumulation and why big capital needs manipulation.
❕ What is the AMD model?
The AMD (Accumulation, Manipulation, Distribution) model is a three-phase strategy that helps traders analyze and forecast market behavior. It is based on studying trading volumes and price movements.
📈 AMD model phases
1️⃣ Accumulationor accumulation: In this phase, smart money (institutional investors) start accumulating assets without retailers noticing. Prices move in a limited range and trading volumes remain low.
➖Objective: Entering the market in the early stages before prices start to rise.
2️⃣ ManipulationA: In this phase, institutional investors manipulate the market by creating false signals for retail traders. This may involve sudden jumps in prices or trading volumes to cause panic or euphoria.
➖Objective: Misleading retailers and forcing them to sell their assets at low prices.
3️⃣ Distribution: In this phase, institutional investors start selling their assets at inflated prices. Prices begin to fall and retailers who bought assets at the peak find themselves in the red.
➖Objective: Exiting the market profitably before a significant price decline occurs.
🔎 How do I use the AMD model?
1️⃣ Analysis of trading volumes: Note the trading volumes at different stages. Low volumes may indicate a build-up phase, while sharp spikes may be a sign of a manipulation phase.
2️⃣ Identifying patternsA: Use technical analysis to identify patterns that correspond to different phases of the AMD model. I have attached a picture of the pattern to the post. 👆
3️⃣ Monitoring the news: Keep an eye out for news and events that may affect the market. Institutional investors often use news to manipulate the market❗️
AMD's model is a powerful tool that can help traders make informed decisions and avoid market pitfalls. However, like any strategy, it requires careful study and practice. Intelligent investing always begins with a thorough analysis and understanding of the market.