It was obvious at the beginning of the year that Bitcoin was in an accumulation phase. This is the phase where traders invest in an asset and wait for a substantial increase in its value during the next markup phase.

The Wyckoff method states that, after the price of an asset is sufficiently marked up, a distribution phase follows, during which investors start dumping the assets at a substantial profit.

An unusual Bitcoin metric that looks at BTC held for a certain period of time has suddenly spiked. This suggests that distribution is peaking and huge profit-taking is in progress.

The Wyckoff schematics depicting distribution theory is also saying that the distro phase has been taking place since June and it’s still ongoing. This metric suggests that profit-taking is actually peaking now and the effect of selling could have resulted in Bitcoin’s recent pullback. Bitcoin is currently down by 2.54% in 24hrs and trading at $8,490 at the time of writing.

According to Rafael Schultze-Kraft, Glassnode data scientist, there has been a huge spike in the average spent output lifespan for Bitcoin today. He claims this is the highest we’ve seen this year. It was indicated that Bitcoin as old as 250 days are being moved, probably to exchanges, corresponding with today’s drop. Schultze-Kraft claims this data corresponds with mid-march when the price was around $4,000, suggesting possible profit-taking.

During markdown phases, asset prices continue to pull-back until it becomes attractive to investors once more. Bitcoin failed to cross the $14,000 level and set a new all-time high. In view of that, it’s difficult to say if the former low of $3.150 or higher, will be attractive enough for investors who are dumping right now, to accumulate once again.

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