Key Takeaway
- Institutional capital is shifting from Bitcoin into altcoins amid early signs of a market rotation.
- Bitcoin has entered a Wyckoff distribution phase, indicating weakening demand and seller control.
- Altcoins are exiting accumulation zones and entering a structural markup phase.
- Mainstream media may turn bullish on Bitcoin too late, leaving retail investors behind the altcoin surge.
Major market players are shifting capital from Bitcoin (BTC) into alternative cryptocurrencies (Altcoins), according to Joao Wedson, CEO of analytics firm Alphractal, who says a quiet rotation is underway as retail investors remain fixated on Bitcoin’s price action.
In a detailed post on social media platform X, Wedson argued that altcoins are emerging from their accumulation zones and entering a phase of structural markup, as Bitcoin begins what he describes as a Wyckoff distribution cycle, a phase in which institutional investors gradually exit their positions.
The technical basis for Wedson’s outlook is based on the Wyckoff Method, a market cycle framework dating back to the early 20th century and commonly used to interpret institutional trading behavior.
In his post, Wedson said that Bitcoin is in the final stages of a 13-point distribution pattern, marked by weakening demand and systematic selling by large holders.
He noted that key phases, such as the buying climax and automatic reaction, have already played out, with recent price action showing a “last point of supply” followed by a breakdown below the so-called “ICE” level, a key structural support.
These signals, according to Wedson, suggest the market is now dominated by distribution rather than accumulation.
Wedson has also cautioned that mainstream coverage could mislead late entrants into Bitcoin, just as capital is quietly shifting elsewhere.
“Soon, we’ll see the mainstream media pushing bullish BTC narratives, trying to draw in late buyers, when in reality, the real opportunities are shifting into Altcoins,” he wrote.
“If you wait for media confirmation to buy Altcoins, it may already be too late,” he added, predicting that the market will ultimately cycle from Bitcoin to altcoins, and eventually into fiat as investors look to exit near the peak.
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