Bitcoin’s price action is raising some eyebrows, suggesting a significant sell-off might be on the horizon.
Bitcoin’s Potential Downward Spiral
Crypto analyst Joao Wedson recently analyzed Bitcoin’s price using the Wyckoff Distribution model. This model essentially maps how large investors (“smart money”) strategically sell off assets at market peaks. Wedson believes Bitcoin is currently undergoing this process, highlighting a 13-phase pattern playing out.
He broke down the phases: It starts with subtle institutional selling, followed by a price peak (Buying Climax) driven by dwindling demand. A sharp price drop (Automatic Reaction) follows, establishing the bottom of the distribution range. Subsequent price attempts to reach previous highs (Secondary Tests) lack the previous momentum and volume.
The pattern continues with sideways price movement (Phase B), confusing regular traders while institutions quietly sell. Key signals appear later: a significant price drop with high volume (Sign of Weakness), a weak rally (Last Point of Supply), and finally, a break that triggers a deeper fall.
Altcoins on the Rise?
Wedson suggests that market makers are shifting their focus to altcoins. He sees altcoins leaving their accumulation phases and preparing for significant price increases, suggesting growing interest in the altcoin market. In contrast, Bitcoin’s entry into a weekly distribution phase might mean weaker performance in the short term. Wedson even predicts a complete shift from Bitcoin to altcoins, and eventually to fiat, by the end of 2025.
At the time of writing, Bitcoin is trading around $113,439, with little change in the last 24 hours.
