The post Bitcoin Crash Ahead? Sell-the-News Risks Signal $85k as Distribution Phase Begins appeared first on Coinpedia Fintech News
After teasing a new all-time high (ATH) during the inauguration of pro-crypto US President Donald Trump, Bitcoin (BTC) price closed Monday in a shooting star candlestick. The flagship coin has been evolving into a potential reversal pattern after registering palpable gains since January 2023.Â
Following the heightened crypto volatility, more than $638 million was rekt in the leveraged market, with the majority involving long traders. As a result, the odds of a long squeeze have significantly increased, which could add more fuel to bearish sentiment ahead.
Has the Bitcoin’s Bull Cycle Top Reached?
After entering price discovery in 2024, Bitcoin is fast approaching the distribution phase, which often marks the beginning of a macro bear market. Market analyst @Htltimor on the X platform has opined that Bitcoin price has completed the parabolic phase of the 2024/2025 bull cycle, and the distribution phase is on the horizon.
As a result, the crypto analyst thinks that Bitcoin price will continue in bearish sentiment towards $85k in the coming months, thus kickstarting the multi-quarter accumulation phase in preparation for the 2028 halving.
Whale Investors Undeterred
According to market data from Coinglass, the overall supply of Bitcoin on centralized exchanges has continued to shrink, and currently sits at around 2.19 million. The approval of spot BTC ETFs in the United States in 2024 has been a major contributor to the crypto bullish sentiment.
Led by BlackRock’s IBIT and Fidelity’s FBTC, the US spot BTC ETFs have accumulated total net assets worth over $120 billion. MicroStrategy Inc. (NASDAQ: MSTR) has continued to purchase more Bitcoins through leveraging global capital markets.
