Bitcoin [BTC] has officially entered phase E of the Wyckoff accumulation model, which is typically characterized by a breakout and strong bullish continuation.
We witnessed a major technical confirmation on May 24, when the 50-day moving average crossed above the 200-day moving average, forming the preferred 'golden cross' on the daily chart.
This chart pattern is traditionally seen as a long-term bullish signal. It usually indicates a shift in sentiment.
Naturally, many traders are now targeting the $125,000 level - the first major resistance during this upward phase.
Source: X
And the real question remains: what will happen next?
Cryptocurrency bills may launch in the U.S. Senate, marking the next phase of the market.
According to a tweet from a prominent market analyst, the next Bitcoin cycle could either be a distribution phase or a reaccumulation phase.
From his perspective, a reaccumulation is more likely, especially with the U.S. Senate preparing to vote on major cryptocurrency legislation soon.
Of course, regulatory events add volatility. But they may also support institutional confidence, especially if legal clarity around digital asset classifications emerges.
Addresses withdrawing Bitcoin are on the decline.
Blockchain metrics reinforce the current rise.
The decline in the number of withdrawal transactions from trading platforms - a key indicator tracking the number of times Bitcoin is transferred to private wallets - suggests that selling pressure may be easing.
As the decline intensifies, the resulting pullback in selling pressure may act as a hidden bullish driver, reducing overall cost resistance and boosting price momentum.
This pattern aligns with analysts' expectations of a distribution move near $260,000 by August or September, assuming market supply remains limited.
Source: CryptoQuant
Policies and price movements to watch
With Bitcoin stabilizing in phase E of the Wyckoff classification, supported by a 'golden cross,' the near-term momentum is strong.
However, economic conditions, such as regulation and blockchain trends, will determine what happens next.
If the market passes this phase, reaccumulation or distribution will depend on investor confidence and the fate of pending Bitcoin bills.
