Bitcoin Enters Wyckoff Phase E With 50-Day MA Crossing 200-Day MA

Bitcoin has entered Phase E of the Wyckoff Accumulation model, a pattern typically marked by a breakout and strong upward continuation. This phase is supported by a 'golden cross,' where the 50-day Moving Average (MA) crossed over the 200-day MA on May 24, signaling a bullish long-term trend. This technical confirmation suggests a shift in market sentiment, with many traders now targeting the $125K mark as the first major resistance within this phase.

The implications of this phase extend beyond the immediate price target. According to a highly regarded market analyst, the next cycle for Bitcoin could either be a distribution phase or a re-accumulation phase. The analyst leans towards re-accumulation, especially with the U.S. Senate poised to vote on key crypto legislation soon. Regulatory events, while injecting volatility, could also bolster institutional confidence if legal clarity around digital asset classifications emerges.

On-chain metrics further support the current rally. The declining number of Exchange Withdrawing Transactions indicates that selling pressure may be diminishing. This trend suggests that fewer Bitcoins are being moved to private wallets, which could act as a stealthy bullish driver by reducing overhead resistance and enhancing price momentum. This pattern aligns with the analyst’s projection of a distribution move near $260K by August or September, assuming market supply remains constrained.

With Bitcoin firmly in Wyckoff Phase E and backed by a 'golden cross,' near-term momentum appears strong. However, macro conditions such as regulation and on-chain trends will dictate the next steps. If the market undergoes re-accumulation or distribution, it will depend on investor sentiment and the outcome of pending legislation on Bitcoin bills. The path forward for Bitcoin, therefore, hinges on a combination of technical indicators, regulatory developments, and market psychology.