Dreadful prospect for Bitcoin: Could it plummet to $95,000?
Caution Urged in Bitcoin Market as Distribution Phase Approaches
The Bitcoin market is entering a critical phase, and traders are advised to exercise caution in their decisions, according to a recent analysis by cryptocurrency enthusiast Simon Dumoulin.
In his article, updated on 08/12/2025 at 12:50 PM, Dumoulin explains that the upcoming US Consumer Price Index (CPI) report could significantly impact the crypto market and risk appetite. He notes that Bitcoin is struggling to maintain its previous all-time highs, potentially leading to a drop towards the $95,000 level.
This potential drop is due to a distribution phase that Bitcoin appears to be entering, following a classic Wyckoff distribution pattern. This pattern involves several phases: Preliminary Supply, Buying Climax, Automatic Reaction, Secondary Tests, and a Sign of Weakness.
The distribution phase is characterized by institutional selling and weakening retail participation, which may lead to a decrease in Bitcoin's price. Analysts have warned that Bitcoin's recent price momentum is weak, and the support level of $100,000 may be at risk of failing, potentially leading the price down to around $95,000.
However, it's worth noting that despite this distribution phase, some analysts believe Bitcoin could reach higher prices by the end of 2025, potentially between $200,000 and $250,000. The market remains highly speculative, and trends can shift rapidly based on various factors.
The distribution phase in Bitcoin has also led to increased interest in altcoins, with strategies like staking and dollar-cost averaging gaining traction. As Bitcoin's dominance decreases, investors are looking to diversify their portfolios by investing in platforms such as Cardano and Solana.
Dumoulin, known for writing clear and accessible articles to make crypto understandable for everyone, urges investors to remain vigilant about this potential reversal in Bitcoin's price direction. He emphasizes the importance of staying informed and cautious in the current market conditions.
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In light of the distribution phase approaching in the Bitcoin market, investors should consider the role of technology and finances when making investment decisions. This phase, characterized by institutional selling and weakening retail participation, might lead to a decrease in Bitcoin's price and provide opportunities for investments in altcoins like Cardano and Solana.
