The Bitcoin market has been showing signs of increasing selling pressure, with its recent price action hinting at an even deeper distribution phase unfolding beneath the surface.
The analyst started his breakdown with the Preliminary Supply (PSY) phase, where there are subtle signs of institutional sales, and a Buying Climax, where price hits a peak due to exhausted demand. This phase is then followed by an Automatic Reaction (AR), a sharp drop in Bitcoin’s price, defining the bottom of the distribution range.
The fourth and fifth phases are Secondary Tests (ST), where price retests the highs of the distribution range, but with weaker momentum and volume. As the pattern matures, the price enters Phase B with sideways movement, confusing retail participants as the institutions quietly offload their coins.
Finally, still within phases C and D, a break of ICE leads to a deeper fall, after which a second LPSY trap follows to seal the distribution.
Going further, Wedson pointed out that the market makers are rotating into altcoins. According to the analyst, altcoins are already exiting their accumulation zones and are being positioned for structural markups, reflecting increasing interest in the altcoin market.
As of this writing, Bitcoin is valued at about $113,439, reflecting no significant movement in the past 24 hours.
