Distribution
A phase where informed holders quietly sell into strength near a top, transferring coins to late buyers.
Distribution is the market-top counterpart to accumulation: a phase where early, informed holders sell into the strength and euphoria of a rally, offloading positions to enthusiastic latecomers while price churns near highs. It’s the quiet transfer of coins from strong to weak hands.
On-chain signatures include long-term holders spending long-dormant coins (spiking coin days destroyed), HODL wave veteran bands thinning, and exchange inflows rising. Like accumulation, it’s clearer in hindsight — during distribution the mood is maximally bullish, which is exactly what allows large holders to sell without crashing the price prematurely.