Bitcoin enters ‘Wyckoff Phase E’ – Mapping BTC’s path to $125K and beyond
Bitcoin has entered Wyckoff Phase E, marked by a 'golden cross' on the daily chart, indicating bullish sentiment and targeting $125K short-term. Analysts predict a potential rise to $260K by August-September, driven by declining withdrawal activity. Upcoming U.S. Senate crypto legislation could influence market dynamics, with possibilities of re-accumulation or distribution phases. The current decline in Bitcoin withdrawals suggests reduced selling pressure, supporting price momentum. Overall, macro conditions and regulatory developments will play crucial roles in Bitcoin's future trajectory.
- Bitcoin enters Wyckoff Phase E with a ‘golden cross,’ setting sights on $125K short-term.
- Analyst eyes $260K by August–September, citing shrinking withdrawal activity as a key driver.
Bitcoin [BTC] officially entered Phase E of the Wyckoff Accumulation model—typically marked by a breakout and strong upward continuation.
One key technical confirmation was witnessed on the 24th of May, when the 50-day Moving Average (MA) crossed over the 200-day MA, forming the favorite ‘golden cross’ on the daily chart.
The chart pattern is traditionally considered a bullish long-term signal. It usually indicates a shift in sentiment.
Naturally, many traders have now set their sights on the $125K mark—the first major resistance within this markup phase.
Source: X
The real question remains—what happens beyond that?
U.S. Senate crypto bills could initiate the next market phase
From a highly regarded market analyst’s tweet, the next cycle for Bitcoin could either be a distribution phase or a re-accumulation phase.
The likeliest, in his view, is re-accumulation, particularly with the U.S. Senate set to vote on key crypto legislation soon.
Of course, regulatory events inject volatility. But they could also support institutional confidence, especially if legal clarity emerges around digital asset classifications.
Addresses withdrawing Bitcoin are declining
On-chain metrics add fuel to the current rally.
The declining number of Exchange Withdrawing Transactions—a key indicator tracking how often BTC is moved to private wallets, suggested selling pressure may be dwindling.
Picking up on the decline, the resulting fade in selling pressure may act as a stealthy bullish driver, reducing overhead resistance and powering price momentum.
This pattern aligns with the analyst’s projection of a distribution move near $260K by August or September, assuming market supply remains constrained.
Source: CryptoQuant
Policies and price action to watch
With Bitcoin firmly in Wyckoff Phase E and backed by a ‘golden cross,’ near-term momentum is firm.
Macro conditions like regulation and on-chain trends will, however, dictate what happens next.
If the market goes through, re-accumulation or distribution will be contingent on investor sentiment and the fate of legislation on the pending Bitcoin bills.