Bitcoin News Today: Bitcoin Enters Wyckoff Distribution as Altcoins Gain Momentum

Bitcoin's price action has recently shown signs of entering a Wyckoff Distribution phase, a technical analysis model that often signals the end of a bullish cycle and the beginning of a distribution period driven by institutional selling [1]. Crypto analyst Joao Wedson outlined this development on the social media platform X, noting a 13-phase schematic unfolding in real time. The pattern begins with the Preliminary Supply phase, where subtle signs of institutional sales emerge, followed by a Buying Climax as prices hit a peak driven by exhausted retail demand. This is then succeeded by an Automatic Reaction, marked by a sharp drop in Bitcoin’s price, which defines the bottom of the distribution range [1].

According to Wedson, phases C and D of the model present the most irrefutable signs of weakening demand, including a Sign of Weakness (SOW), often characterized by a strong breakdown on high volume, and a Last Point of Supply (LPSY), where a weak rally creates favorable conditions for short positions. The final stage involves a break of ICE, leading to a deeper fall, followed by a second LPSY trap that seals the distribution phase [1].

The analyst further noted that as Bitcoin transitions through these phases, institutional investors are quietly offloading positions while retail traders remain optimistic. This dynamic is particularly evident in the current sideways movement of Bitcoin’s price, which has left many retail participants confused about the market's direction. As of the latest report, Bitcoin's price has remained relatively flat at around $113,439 over the past 24 hours [1].

In parallel, Wedson highlighted a growing trend of market capital rotation into altcoins, suggesting that altcoins are now exiting their accumulation phases and entering structural uptrends. This shift could mean that altcoins may outperform Bitcoin in the near term, with Wedson forecasting a full rotation from Bitcoin to altcoins and eventually to fiat by the end of 2025 [1]. Such a development would reflect a broader reallocation of capital and changing market dynamics, with altcoins potentially benefiting from increased institutional interest and retail speculative activity.

The broader crypto market has also seen developments that could support this narrative. For instance, Russian crypto holders have recently received clarity on travel restrictions related to their digital assets, indicating a move toward more structured and regulated global crypto environments [2]. This regulatory clarity may encourage further institutional participation and market liquidity, aligning with the broader trend of altcoin momentum.

Additionally, certain altcoins such as XRP have been identified as potential beneficiaries of this reallocation. Industry forecasts suggest that XRP could experience a 20% price surge in the coming months [3], underscoring the growing interest in smaller-cap assets as Bitcoin consolidates. While this is a speculative projection, it reflects the current appetite for altcoin exposure amid Bitcoin's possible distribution phase.

As the crypto market continues to evolve, investors are being urged to closely monitor Bitcoin's price behavior and altcoin performance. The Wyckoff model remains a useful tool for interpreting institutional selling patterns and identifying shifts in market leadership. Those who recognize the early signs of distribution and capitalize on altcoin momentum may be well-positioned to navigate the potential transition from a Bitcoin-led market to a more diversified altcoin-driven rally.

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[1] Bitcoin Enters Wyckoff Distribution — Time For Altcoins To Shine?

(https://www.mitrade.com/insights/news/live-news/article-3-1007954-20250803)

[2] Russian crypto holders get clarity on travel restrictions for digital assets

(https://www.mitrade.com/insights/news/live-news/article-3-1007957-20250803)

[3] XRP eyes 20% surge in August

(https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96549595/xrp-eyes-20-surge-in-august-crypto-returns-to-us)