Bitcoin Enters the Distribution Phase and There Are Oppoutunities For Traders Only When They Know What They Supposed to Do.
Analysts say that Bitcoin is stuck in a distribution phase. Let me explain simply what is going on. There is a phase called Wyckoff distribution phases which we see a lot in the Bitcoin chart. Here we are going to tell you step by step how it is.
What’s Distribution Phase in BTC Chart?
First look at the chart below and read the next to see what each part of this chart supposed to mean.
- Buying Climax (BC): The price reaches the peak with very high trading volume. This is the moment when everyone gets excited and thinks it will go to the moon
- Automatic Reaction (AR): Suddenly the price drops significantly and the bottom of the distribution range becomes clear
- Secondary Tests (ST): The price goes up again to test the peak but it no longer has the previous strength and momentum; volume and momentum are weak
- Sideways Movements (Phase B): The price moves up and down confusing everyone but the big money, or Smart Money, is controlling the game
- Sign of Weakness (SOW): A strong drop with high volume means demand is decreasing and danger is near
- Last Point of Supply (LPSY): A weak move to raise the price but with very low volume; this is a good place to take a short position
- Break of Support (Break of ICE): The main support breaks and the price cannot hold itself
LPSY trap and drop is another attempt to deceive but then the price falls again. Well, I explained it all, now let’s see what is happening.
What’s Happening Now on the Market After All This
Whales and market makers are exiting Bitcoin and moving towards altcoins. Altcoins are just now coming out of the accumulation phase and getting ready to grow. On the other hand, the media will soon start spreading positive news about Bitcoin to tempt ordinary people to buy, but the reality is that the big money is elsewhere.
What is my personal opinion then?
In the short term, Bitcoin will probably either perform weakly or have very modest growth because it is stuck in a weekly distribution phase, but altcoins are getting ready for a structural move. If we wait for the media to tell us to buy altcoins, it will probably be too late :)) My prediction is that by the end of 2025, money will move from Bitcoin to altcoins and then be cashed out.
Let me also share a bitter truth, friends: Only 1% make real profits in this market; the other 99% get stuck. If you use leverage, your chance of success drops below 4%.
How to succeed?
This game requires years of experience, precise analysis, statistical framework control, emotional control, and patience. If you have these, maybe you can be part of that 1%. I’m not worried. Bitcoin will start the accumulation phase again; this distribution phase will eventually end. We just have to be patient. The market always rewards patient people.
Of course, this is not financial advice, just some analysis, thoughts, and opinions that I share with you.