BTC 3-Month Gains Return: But Is Another Rug Pull Brewing?

Key Highlights:BTC’s 3-month percentage gain exceeds 400% again, near levels that preceded past drops.Fear and Greed Index rises to 53.3%, showing growing optimism but not overheating.Wyckoff chart signals BTC may enter a distribution phase after a long rally.The 3-month gains of Bitcoin have returned strongly positive, indicating renewed strength. Despite the recent price gains, traders remain cautious as sentiment strengthens.The Wyckoff structure is beginning to reveal signs of distribution. At press time, BTC was trading within a narrow range. Upcoming price action will determine whether the trend strengthens or starts to fade.BTC Short-Term Gains Rebound StronglyBitcoin’s 3-month price change is now positive again, as shown by the latest chart from Alphractal. The indicator indicates a 400% increase for BTC from its local low three months ago.Despite these moves, significant pullbacks have occurred in the past. History suggests that corrections often follow sharp price gains.Bitcoin percentage change 3 months | Source: AlphractalMany past cycles have shown that this indicator turning green has preceded price reversals. The price declined sharply in early 2018 and mid-2021 after the 3-month change peaked.Because of this pattern, investors are now approaching current levels with caution. Trading between $104,000 and $105,000, BTC has recently shown signs of market uncertainty in this range.Should it lose this support area, there is a risk of a price decline and increased selling. Substantial price increases or sudden decreases often follow green spikes on this chart.Fear and Greed Index Shows Growing ConfidenceMoreover, the BTC Fear and Greed Index has increased, signaling investors are more optimistic. CryptoQuant reports that the index’s average level has risen to 53.3%, mostly around 41% in earlier months. The index remains well under the threshold for extreme greed, around 75%.Bitcoin fear and greed index | Source: CryptoQuantIn the past, the index has gone above 70% just before significant Bitcoin price peaks. Up to this point, the market has not reached that danger zone.Traders are closely monitoring this trend. Previous increases in the index have occasionally led to lower buying volume and price reversals.The index rose after it was reported that Washington and Beijing discussed trade. That news was seen by investors as a sign of reduced macro uncertainty and helped raise market sentiment.As investor sentiment becomes more greedy, a quick drop in price could easily reverse the market mood.Wyckoff Structure Suggests Distribution May Be StartingOn the other hand, the Wyckoff Market Structure chart demonstrates that BTC has completed both accumulation and re-accumulation. The current arrangement on the chart points to the token possibly moving into the distribution phase.After significant price increases, this phase tends to appear and often indicates that the trend may be finishing.Bitcoin wyckoff market structure analysis | Source: XWithin this model, Bitcoin increased from $20,000 in late 2022 to more than $104,000 in May 2025. After the completion of the accumulation, the market saw a familiar pattern: BTC traded sideways and then broke out.Bitcoin’s current price action resembles the final phase of Wyckoff’s cycle. Prices remain elevated but are losing momentum, potentially forming a top.If this pattern continues, Bitcoin could stay between $160,000 and $190,000. The next redistribution phase may begin after this range is maintained. Yet, price decreases are expected before the token reaches these levels.Global Liquidity Trends Still Favor BTC StrengthBitcoin’s price tends to follow the direction of global liquidity. Analyzing Bitcoin alongside Global M2, a key money supply measure, supports this trend.Titan of Crypto’s chart demonstrates that BTC price has responded sharply to the three previous rallies in global M2.Bitcoin wyckoff market structure analysis | Source: XBitcoin price followed global liquidity in every case, but with a slight delay before matching the trend. The present rally in both assets proves that macro liquidity supports higher prices. The rise in M2 since early February likely contributed to the recent sharp price increase.This suggests another rise in the near term, but the experience shows that BTC often falls sharply after liquidity peaks. Every green marker pinpoints the end of a rally and the start of a correction.DisclaimerIn this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.godfrey mwirigiThe post BTC 3-Month Gains Return: But Is Another Rug Pull Brewing? appeared first on The Market Periodical.