- Bitcoin is entering a distribution phase as outlined by the Wyckoff method, signaling weaker price action and reduced buyer strength in current conditions.
- Altcoins are exiting their accumulation phases, with analysts observing increased smart money inflows and early signs of structural markup activity.
- Market makers are shifting from Bitcoin to altcoins while mainstream narratives continue promoting BTC strength, potentially misleading late retail entrants.
Bitcoin is currently showing clear signs of entering a short-term distribution phase, according to chart patterns aligned with the Wyckoff method. Market activity suggests smart money is rotating into altcoins as Bitcoin approaches a weaker performance period.
Wyckoff Pattern Indicates Bitcoin Distribution in Progress
In a recent tweet, analyst Joao Wedson pointed out that Bitcoin is going through a textbook Wyckoff distribution structure. He outlined thirteen technical points, beginning with Preliminary Supply (PSY), where institutional selling begins despite continued strong demand.
The Buying Climax (BC) follows, marked by a high-volume price peak often driven by retail enthusiasm. The Automatic Reaction (AR) defines the lower range boundary, with the Secondary Test (ST) retesting highs at reduced volume and momentum. This is where confusion typically reigns for retail investors, while large players maintain control.
The trend advances with a Sign of Weakness (SOW), showing price breakdowns under heavy volume. A Last Point of Supply (LPSY) follows, often appearing as a final weak rally attempt before support collapses—referred to by Wedson as the “Break of ICE.”
Altcoin Accumulation Gains Momentum as BTC Weakens
Wedson’s tweet further suggested that while Bitcoin undergoes distribution, market makers are actively rotating into altcoins that have been in quiet accumulation. He warned that mainstream media might soon push bullish Bitcoin narratives to attract latecomers but stressed that this could be a trap for uninformed investors.
The emerging structural markup in altcoins, according to the analysis, reflects a shift in capital allocation. As Bitcoin enters a weekly distribution phase, altcoins are seen preparing for potential price breakouts. Wedson noted that waiting for traditional media confirmation could result in missed altcoin entry opportunities.
He emphasized the rarity of success in the market, stating that fewer than 1% of participants consistently profit. For those using leverage, that figure drops to under 4%. The process, as he described, requires time, data, discipline, and consistent market observation.
Strategic Rotation Could Define Market’s Next Phase
Looking ahead, Wedson anticipated a complete rotation from Bitcoin to altcoins and then to fiat by the end of 2025. He emphasized patience and positioning, reminding his followers that Bitcoin will eventually accumulate as well.
He framed the current period as a test for traders who seek to build long-term positioning. The current Bitcoin setup, based on historical Wyckoff patterns, has often preceded the redistribution of market capital into alternative digital assets.
The analysis reinforces the notion that market cycles are shaped by accumulation and distribution, where informed participants often act contrary to mainstream narratives. For now, attention appears to be shifting from Bitcoin dominance to altcoin opportunity.
