The digital asset market has seen impressive growth in the past seven days, with the Fed's decision to cut interest rates by 50 basis points on Wednesday, October 18. This move has been positively received by investors, creating a new wave of optimism.

The current technical structure may shift to a Wyckoff accumulation pattern, where smart investors buy at a discount, absorbing selling pressure from weaker investors.

Dow Theory can help understand the current market mechanism, divided into three phases: accumulation, absorption, and distribution. This theory, originally used for the stock market, is also applicable to digital assets.

Bitcoin's price in the past few years can be divided into accumulation and distribution cycles. 2022 is a clear distribution cycle, putting bitcoin at a technical breaking point in late 2022-2023.

Bitcoin’s actual price is steadily rising, reaching $31,722.37, indicating that the majority of bitcoin investors are in profit.

Last year was an accumulation phase, ending with a distribution cycle in 2024. Once it finds the right technical support, bitcoin could enter a re-accumulation phase, potentially reaching six figures.