Bitcoin has entered a Wyckoff distribution phase signaling short-term market weakness, exhibiting distinctive technical patterns including Preliminary Supply (PSY), Buying Climax (BC), and Signs of Weakness (SOW). This framework indicates institutional selling pressure, retail-driven price peaks at BC formations, and deteriorating momentum prior to potential decline.
Concurrently, altcoins are displaying early structural markup conditions fueled by accelerating smart money inflows. This divergence reflects strategic rotations among market makers shifting capital from Bitcoin-centric positions toward alternative digital assets, notably altering crypto market dynamics.
Investors are advised to exercise caution against mainstream Bitcoin narratives during this phase and prioritize disciplined analytical approaches. Technical signals suggest Bitcoin’s distribution structure remains dominant despite visible capital migrations toward strengthening altcoin markets.