Whether we look at strong price turning points, trends or support and resistance areas, the concept of supply and demand is always at the core of it.
A strong uptrend can only exist if buyers are more than sellers in the market. During a trend, price moves up until enough sellers enter the market to absorb the buy orders. The origin of strong bullish trends is called an accumulation or a demand zone. Bearish trends are created when sellers outnumber buy orders. Then, price falls until a new balance is created and buyers become interested again. The origin of a bearish trend wave is called a distribution or a supply zone.
Supply and demand drives all price discoveries, from local markets to international capital markets. When a lot of people want to buy a certain item with limited quantity, price goes up until the buying interest matches the items available. On the other hand, if no one wants to buy a certain item, the seller has to lower the price until the buyer becomes interested or otherwise there won’t be a transaction.
Currently, the crypto market is at demand level, meaning that buyers already got and reached the desired Market Cap and its price level. The market is unbalanced, buyers outnumber buy orders and during the upcoming Bullish trend, the price will increase until enough sellers enter the market to absorb the existing demand.