Is the Distribution Phase Coming to an End?Hey there, traders! 🖐🏼
Let’s talk about distribution—a critical phase in the market cycle that often signals a potential reversal from an uptrend to a downtrend. If You’ve been following Bitcoin’s price action since late 2024, You’ve probably noticed some classic signs of distribution. Let’s dive into what’s happening and how it might shape the market’s next big move!
What is Distribution?
Distribution is a phase where large players (whales, institutions) gradually offload their holdings to retail traders at higher prices. It typically occurs after a strong uptrend, as the market begins to lose upward momentum.
Here’s how distribution looks on the chart:
Sideways Movement: The price trades in a range after a strong rally.
Lower Highs: Each attempt to break higher fails, forming a descending resistance line.
Deccreasing Volume: Buyers lose steam, and trading activity starts to decline.
False Breakouts: The price temporarily breaks above resistance but quickly reverses, trapping late buyers.
Each upward move has been accompanied by lower volumes, suggesting a lack of buyer conviction.
What Comes Next?
If Bitcoin breaks below $90K with strong volume, we could see a sharp move lower, potentially targeting the $84K–$86K range. This would confirm the start of the markdown phase, where prices decline as sellers dominate the market.
Bitcoin is at a pivotal moment. Whether the price breaks down into a markdown phase or rebounds into a new uptrend depends on how it behaves around these key levels.
As always, patience is key! Remember to manage Your risk and trade responsibly!
What do You think? Are we nearing the end of the distribution phase, or is Bitcoin gearing up for a bounce? Let me know in the comments!
Happy trading!
Your Kateryna💋
