The sentiment among crypto investors is mixed and unsure. After May 15, it was bullish, but between May 21 and 23, the outlook turned bearish. The ongoing choppy price action goes back to Bitcoin (BTC), which was unsure about where it wanted to go next. 

Despite the short-term selling pressure, BTC has held up well, which suggests a continuation of the uptrend or the bull run. 

But before we get into that, let’s explore the important events that could shape this week’s narratives.

Crypto events this week

Monday, May 27:

  • Solana (SOL) v1.18 upgrade
  • Floki (FLOKI) announcement

Wednesday, May 29:

  • GenAI summit

Thursday, May 30:

  • Consensus 2024

Friday, May 31:

  • Ethereum Classic (ETC) halving

Top 3 Reads:

These altcoins could explode after ETH spot ETF approval

What’s next after PEPE’s ATH?

New whale wallets are buying these five altcoins on Ethereum: ENS, UNI, AAVE, LDO, LINK

BTC bears throw in the towel

  • As Bitcoin price hit an all-time high of $73,949, it created a buy-side imbalance on the weekly and monthly charts. 
  • Soon thereafter, BTC created multiple equal lows around $59,100, with sell-side liquidity accumulating below it. 
  • It also showed no signs of recovery, with almost no volatility or buying pressure. 

But the subtle signs were always present and now BTC is at a point – at least from a market structure perspective – where a bullish outlook is a high-probability scenario. 

Here there are a few signs showing why the bull run will most likely resume:

  • Bitcoin price collected the sell-side liquidity and rebalanced the aforementioned imbalance, which provided a buying opportunity, as mentioned in an FXStreet publication.
  • To make things interesting, BTC never set up a lower low below a key swing low on the daily time frame without recovering above it in the next day or two. This subtle sign was an important message from the bulls that they were not done yet.
  • As Bitcoin price rallied 7.54% on May 15, it destroyed almost all the chances that bears had of making a comeback. 
  • After the aforementioned rally, BTC produced a daily candlestick close above the 2021 high of $69,138. It also overcame the declining trend line connecting the lower highs formed since 2024’s all-time high. 
  • Although the attempt to overcome this hurdle was successful in the short term, BTC slid below it, signaling doubt. However, the declining trend line held, confirming a successful flip into a support floor.
  • As long as BTC holds above the declining trend line, the chances of restarting the bull run are high. With the approval of Ethereum spot ETFs and BTC’s continued defense of key support levels, the next target is the $80,000 psychological level. 

BTC/USDT 1-day chart

BTC/USDT 1-day chart

While the thesis and targets for Bitcoin price make sense from a logical standpoint, investors can never be 100% sure due to the nature of the crypto markets. If the aforementioned declining trend line fails to hold and BTC slides lower, the bullish outlook will slowly start to come undone. 

The final nail in Bitcoin bulls’ coffin, in the short term, will be a breach of the psychological level of $60,000 in a weekly time frame. This move would definitely produce a lower low on the weekly chart and shift the market structure favoring bears. This move could definitely attract panicking profit-takers and add further headwinds for the bulls.

What to expect if BTC restarts bull run?

The Ethereum narrative kick-off could surprise investors since many ETH-based tokens have been overshadowed either by AI tokens due to the hype or newly launched tokens. Despite such a massive rally since 2023, ETH has barely performed. Hence, investors can expect Ethereum and ETH-based altcoins to reign supreme in the upcoming phase of the bull run.

Here’s an ETH altcoin watchlist:

ETH-beta plays

ETH-beta plays

Apart from the Ethereum category, there are a few other sectors that could see a significant spike in liquidity. To know more - Click here.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content

Recommended Content

Editors’ Picks

Ethereum ETF issuers file updated drafts, ETH staking still a possibility

Ethereum ETF issuers file updated drafts, ETH staking still a possibility

Ethereum (ETH) is down 1% on Wednesday as issuers began filing their final spot ETH ETF S-1 drafts with the Securities & Exchange Commission (SEC) in anticipation of a launch on July 23. Meanwhile, SEC commissioner Hester Peirce also said the regulator may reconsider its position on ETH staking within the ETFs.

More Ethereum News

Could Vitalik Buterin's argument affect support for pro-crypto political candidates?

Could Vitalik Buterin's argument affect support for pro-crypto political candidates?

Vitalik Buterin released a post arguing that politicians who claim to be crypto-friendly now may not support it in the future. Buterin highlighted many key factors that crypto represents beyond trading tokens. Intentions of pro-crypto politicians are becoming the subject of debate following Buterin's post.

More Cryptocurrencies News

Dogecoin provides opportunity for investors to ride potential 40% rally

Dogecoin provides opportunity for investors to ride potential 40% rally

DOGE has maintained price patterns similar to BTC, ETH, and SOL. The popularity of other newer meme coins may be drawing attention away from DOGE. DOGE on-chain metrics and technical indicators suggest a rally may be on the horizon.

More Dogecoin News

AI tokens rally following Grayscale's Decentralized AI Fund launch

AI tokens rally following Grayscale's Decentralized AI Fund launch

Grayscale launched its Decentralized AI Fund on Wednesday, allowing investors to gain exposure to the price of AI-focused cryptocurrencies. Following the announcement, the general market cap of AI tokens rose by nearly 4%.

More Cryptocurrencies News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis