BTC From Accumulation to Distribution
Bitcoin fell around $90,000 earlier today before recovering to slightly above $94,000.
Despite this modest rebound, the cryptocurrency is down 5.8% this week and 13% below its January all-time high of $109,000.
Following this price fluctuation, a CryptoQuant analyst suggests that Bitcoin may be entering a distribution cycle, where price increases decrease as supply flows to newer market players.
BTC From Accumulation to Distribution
Bitcoin expert Oinonen wrote “Entering the Distribution Cycle” on the market cycle. After rising 129.2% in a year and topping $100,000, Oinonen said Bitcoin may be approaching a “cycle top.”
Ki Young Ju said the market is in the “early distribution phase” and might develop for a few more quarters due to individual investors and promotional activities.
Oinonen categorized Bitcoin's recent market trends into accumulation and distribution stages using Dow Theory.
He said that Bitcoin entered an accumulating cycle in 2023 and 2024 after a distribution cycle in 2022.
Bitcoin looks to be returning to distribution in 2025. Despite this transition, Oinonen said the market has room for price discovery due to low financing rates and low leverage.
Price Supports and Future Outlook
Oinonen also referenced Axel Adler Jr., another market watcher, who said Bitcoin's market climate is not overheated and has potential for development given stable macroeconomic circumstances.
Recent Bitcoin purchases by MicroStrategy show institutional demand. The business added 10,107 bitcoins in early 2025 to its 471,107 BTC holdings, continuing its pro-cyclical purchasing policy.
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