Bitcoin Crash Ahead? Sell-the-News Risks Signal $85k as Distribution Phase Begins
After hitting all-time highs (ATH) during the inauguration of crypto-supporting U.S. President Donald Trump, Bitcoin (BTC) Price Monday closed with a shooting star candlestick. The flagship currency has been evolving into a potential reversal pattern since January 2023 after recording significant gains.
As cryptocurrency volatility intensified, more than $638 million was traded in the leveraged market, with the majority involving long traders. As a result, the likelihood of a long squeeze has increased significantly, which could exacerbate bearish sentiment going forward.
Has the Bitcoin bull cycle peaked?
After entering the price discovery phase in 2024, Bitcoin is rapidly approaching the distribution phase, which often marks the beginning of a macro bear market. X platform market analyst @Htltimor thinks Bitcoin price has completed parabolic phase The 2024/2025 bull market cycle is approaching and the distribution phase is approaching.
As a result, cryptocurrency analysts think In the coming months, the price of Bitcoin will continue to decline to $85,000, thus initiating a multi-quarter accumulation phase in preparation for the 2028 halving.
Whale investors undeterred
Market data from Coinglass shows that the overall supply of Bitcoin on centralized exchanges continues to shrink and is currently about 2.19 million. The approval of a spot BTC ETF in the United States in 2024 is a major contributor to bullish sentiment on the cryptocurrency.
Led by BlackRock’s IBIT and Fidelity’s FBTC, the cumulative net assets of U.S. spot BTC ETFs exceed $120 billion. MicroStrategy Inc. (NASDAQ: MSTR) Continue to tap global capital markets to buy more Bitcoin.
