Bitcoin Enters Distribution Phase Amid Heavy Selling Pressure

Bitcoin has entered a distribution phase, driven by investors selling into strength rather than increasing their exposure. According to the latest Bitfinex Alpha report, flow data and on-chain dynamics indicate that BTC has transitioned out of its accumulation phase.

This signals the onset of a period of heavy selling pressure, which could see BTC slump to levels last seen in early to mid-2024. The asset has already slipped below $60,000 amid large outflows from spot exchange-traded funds (ETF) and persistent macroeconomic headwinds.

Analysts believe the recovery may be hiding a more important shift beneath the surface, which is the transition into a distribution regime. During the decline last week, BTC fell to a multi-year low of $59,200, a level last seen in October 2024.

The worst-case scenario will play out if BTC breaks through $60,000 for a sustained period of time. The contraction of spot demand is also contributing to bitcoin's current price trend, with rising energy prices and stronger-than-expected labor market data adding to the pressure.