Bitcoin enters Phase E of the Wyckoff model: The roadmap towards the $125,000 milestone and beyond.

Bitcoin (BTC) has officially entered Phase E in the Wyckoff Accumulation model — a phase that is often associated with strong breakouts and the formation of a clear bullish trend.

On May 24, the market witnessed a prominent technical signal: the 50-day moving average has crossed above the 200-day moving average, forming a ‘golden cross’ pattern — a signal that technical analysts consider a strong indicator of a positive reversal and the beginning of a sustainable bullish trend.

The formation of this pattern not only has technical significance, but also reflects a change in market sentiment, as confidence in the uptrend is increasingly strengthened.

Source: XIt is not surprising that many traders are currently targeting the $125,000 mark — the first important resistance level, opening up expectations for a strong growth cycle in the near future.

Cryptocurrency bills in the U.S. Senate could trigger the next phase of the market

A famous analyst stated that Bitcoin is approaching an important turning point in the current cycle — potentially falling into one of two states: distribution ( or re-accumulation ).

The more highly regarded scenario is the re-Accumulation phase, especially in the context of the U.S. Senate soon voting on key bills related to the cryptocurrency sector.

Although legal factors always pose a risk of market volatility, they also simultaneously open up opportunities to strengthen trust from investment organizations — especially if the legal system can clarify the classification of digital assets.

The number of Bitcoin withdrawal addresses from the exchange is decreasing

On-chain data is acting as a catalyst, fueling the current bullish momentum of Bitcoin.

Specifically, the number of BTC withdrawal transactions from exchanges — a key indicator reflecting the trend of transferring Bitcoin to personal wallets — is showing a clear decline. This trend suggests that selling pressure in the market may be easing.

If this trend continues to be maintained, the selling pressure will gradually be eliminated — thereby creating favorable conditions for the bullish momentum to continue, as the resistance above decreases and market sentiment becomes more positive.

! Source: CryptoQuantNotably, this pattern of behavior also coincides with the analyst’s forecast mentioned: a distribution phase could take place around the $260,000 price range between August and September, provided that supply continues to be as scarce as it is now.

Policies and price movements to watch

With Bitcoin currently stabilizing in Phase E of the Wyckoff model, while being supported by the “golden cross” signal, the bullish trend in the short term is becoming increasingly clear.

However, the next developments will largely depend on macro factors such as the legal framework as well as on-chain data – factors that could change the landscape.

If the bullish momentum continues, the market may enter a phase of re-Accumulation or distribution, depending on investor sentiment and the results of the Bitcoin-related bills awaiting approval.

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