Bitcoin News Today: Bitcoin Enters Distribution Phase as Altcoin Momentum Builds

Bitcoin is currently exhibiting signs of entering a distribution phase, according to analysis grounded in the Wyckoff method. Analyst Joao Wedson has highlighted that the cryptocurrency is undergoing a classic distribution pattern, beginning with the Preliminary Supply phase, where institutional selling has started despite ongoing demand [1]. The pattern continues with a Buying Climax, followed by an Automatic Reaction, a Secondary Test, and ultimately a Sign of Weakness—each stage reflecting a weakening in price action and buyer strength. Wedson noted that these phases are often accompanied by confusion among retail investors, while larger players maintain control [1].

As Bitcoin moves through this distribution phase, altcoins are showing early signs of a structural markup, with increased smart money inflows indicating a potential rotation of capital away from Bitcoin [1]. The Bitcoin dominance metric, which measures the percentage of the total cryptocurrency market cap represented by Bitcoin, has fallen below the critical 61.44% level [1]. This has raised speculation about a broader market shift toward altcoins. Analysts from Bitwise and Standard Chartered have forecasted Bitcoin’s price to rise toward $200K–$250K by the end of 2025, while smart money is quietly reallocating into alternative crypto assets [2].

Investors are exploring a variety of strategies to generate returns as the market evolves. Staking has gained traction, particularly on platforms like Cardano and Solana, offering annual yields between 4% and 8% [3]. Presales and Initial DEX Offerings (IDOs) are also attracting attention, with projects such as MAGACOIN FINANCE drawing significant community interest [3]. Airdrops remain a low-cost entry point for smaller investors, allowing them to receive tokens in exchange for engagement with new platforms or decentralized applications. These distributions can provide meaningful returns if the tokens appreciate after launch [3]. Meanwhile, dollar-cost averaging (DCA) is being used by seasoned investors to accumulate altcoins during price dips, thereby reducing exposure to volatility while building long-term positions [3].

The potential for an altcoin rally is increasing, particularly if Bitcoin dominance retests the 64.60% and 64.80% levels [4]. Analysts suggest that this could trigger a broader market shift, although there are warnings that an increase in BTC.D may also lead to general price losses among altcoins under unfavorable conditions [4]. XRP is also expected to benefit from the reallocation of capital, especially as its reward program re-energizes the ecosystem and attracts attention from traders and investors [5].

The market is being advised to approach the current phase with caution. While some altcoins show strong growth potential, early-stage investments often come with heightened risks, and analysts recommend a balanced and diversified approach [3]. In addition to direct crypto exposure, some investors are turning to crypto-related stocks such as Interactive Brokers, Robinhood, Visa, and PayPal, which have shown improved performance amid Bitcoin’s stabilization [3].

With Bitcoin entering what some describe as a bullish distribution phase—reminiscent of its 2021 pattern—market participants are closely monitoring how capital flows and investor sentiment develop [6]. The coming months could present significant opportunities for those who are prepared to navigate the next phase of the crypto market with a diversified and informed strategy [3].

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Source:

[1] Bitcoin News Today: Bitcoin Dominance Falls Below 61.44 (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-dominance-falls-61-44-altcoin-momentum-builds-2508/)

[2] Bitcoin Price Prediction: BTC Eyes $200K as Smart Money (https://www.mitrade.com/au/insights/news/live-news/article-3-1007246-20250802)

[3] Investors Turn to Altcoins as Bitcoin Stabilizes and Crypto (https://www.ainvest.com/news/bitcoin-news-today-investors-turn-altcoins-bitcoin-stabilizes-crypto-strategies-diversify-2508/)

[4] Altcoin Rally To Commence When These 2 Signals Activate (https://www.mitrade.com/au/insights/news/live-news/article-3-1007604-20250803)

[5] XRP Price August Outlook: Will A Sudden Breakout Catch (https://www.barchart.com/story/news/33834831/xrp-price-august-outlook-will-a-sudden-breakout-catch-traders-off-guard)

[6] Bitcoin Bullish Points to Watch (https://www.facebook.com/groups/512709713219052/posts/150****324475181/)