2025-02-04 05:00:19 by NewsBTC

Bitcoin market activity over the past day has been marked by turbulence, with its value falling to as low as $90,000 levels earlier today before rebounding to just above $94,000. Despite this partial recovery, the cryptocurrency remains down 5.8% over the past week and more than 13% below its all-time high of $109,000, reached in January. This recent price movement has led a CryptoQuant analyst to suggest that Bitcoin may be transitioning into a distribution cycle, a phase where price gains start to slow as supply shifts toward newer market participants. Bitcoin Transitioning From Accumulation to Distribution The analyst known as Oinonen, discussed the current state of Bitcoin’s market cycle in a recent post titled “Entering the Distribution Cycle.” Oinonen noted that after gaining 129.2% over the past year and surpassing $100,000, Bitcoin might be nearing a “cycle top.” He cited comments from Ki Young Ju, who suggested that the market is in the “early distribution phase” and could potentially see a few more quarters of growth, influenced by retail investors entering the market and broader promotional efforts. Applying Dow Theory to Bitcoin’s recent market patterns, Oinonen explained that the cryptocurrency’s market movements can be divided into accumulation and distribution phases. Bitcoin price chart. | Source: CryptoQuantHe pointed out that while 2022 represented a clear distribution cycle, Bitcoin transitioned into an accumulation cycle in 2023, which extended through 2024. Now, as 2025 unfolds, Bitcoin appears to be shifting back into a distribution phase. Despite this shift, Oinonen emphasized that the market still has the potential for further price discovery, citing relatively low funding rates and a lack of overleveraged conditions. Price Supports and Future Outlook Oinonen also cited Axel Adler Jr, another market observer, who shared similar sentiments, noting that Bitcoin’s current market environment is not overheated and retains the potential for additional growth under stable macroeconomic conditions. This view is supported by the ongoing institutional demand reflected in MicroStrategy’s recent Bitcoin purchases. The company has continued its pro-cyclical acquisition strategy, adding 10,107 bitcoins in early 2025 and bringing its total holdings to 471,107 BTC. This sustained institutional interest serves as a leading indicator of market confidence and highlights Bitcoin’s continued appeal as a long-term investment. BTC price is moving downwards on the 2-hour chart. Source: BTC/USDT on TradingView.comOinonen mentioned that as Bitcoin hovers near its “fair price” support level of $87,990—identified by its power-law fit—further developments should be watched out for. The analyst added: Despite the approaching distribution cycle, Bitcoin might still reach significantly higher spot price levels. Bitcoin’s funding rate is relatively low and comparable to summer 2024 levels. We’re far from an overleveraged market, and the structure supports further spot price discovery. Featured image created with DALL-E, Chart from TradingView Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. 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