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Bitcoin Bulls Receive Major Signal: 5 Key Insights for This Week’s Market (May 12, 2025)

Bitcoin bulls appear to be roaring into action this week as the cryptocurrency touches multimonth highs amidst a backdrop of economic uncertainty. As of May 12, 2025, Bitcoin’s price approached a staggering $105,706 on Bitstamp, tantalizingly close to its all-time high, while traders brace for potential volatility linked to key economic indicators like the U.S. Consumer Price Index (CPI).

A Bullish Cross and Market Reactions

Bitcoin’s latest surge is buoyed by a bullish signal from the Moving Average Convergence Divergence (MACD) indicator. This technical pattern, last seen in October 2024, has traders buzzing. “Probably the biggest signal you can get at the moment,” noted popular trader Moustache on social media platform X, highlighting the ongoing optimism in the market despite geopolitical tensions. This optimism echoes sentiments from earlier this year, as detailed in Bitcoin Jumps Above $97K as Traders Optimistic U.S.-China Trade Deal Possible.

The market’s response to U.S.-China trade negotiations has also been noteworthy. As Daan Crypto Trades observed, “Any tiny dip was getting scooped up instantly,” suggesting that traders are keenly attuned to developments that could impact Bitcoin’s trajectory. The weekend’s price action reflected heightened sensitivity, with Bitcoin experiencing sharp fluctuations directly linked to trade news. For further insights, see Bitcoin Traders Eye Breakout to New Highs as Trump Says Tariff Deals Progressing.

CPI and PPI: The Week’s Economic Headliners

The forthcoming release of the U.S. CPI and Producer Price Index (PPI) figures for April are anticipated to be pivotal moments for both Bitcoin and broader risk assets. These economic indicators, coupled with ongoing discussions around U.S. trade policy, are setting the stage for potentially turbulent market conditions.

Amidst this backdrop, some analysts remain cautious. The Kobeissi Letter commented on social media, “Uncertainty is still everywhere,” acknowledging the tepid market response to otherwise bullish trade news. Meanwhile, Mosaic Asset pointed out the lack of bullish catalysts from the Federal Reserve’s recent decision to keep interest rates steady, despite ongoing market volatility.

Supply Dynamics and Retail Sentiment

Interestingly, despite Bitcoin’s impressive ascent, mainstream retail interest remains subdued. The Crypto Fear & Greed Index, which gauges market sentiment, recorded a reading of 70/100β€”lower than the levels seen when Bitcoin was priced at $94,000. This suggests that while prices soar, investor exuberance hasn’t hit extreme levels, potentially indicating a more sustainable rally.

On the supply side, the proportion of Bitcoin held in profit has crossed the 98% mark. CryptoQuant’s analysis suggests that long-term holders might view this as an opportune moment to de-risk, especially as Bitcoin edges closer to its all-time highs. Yet, newer entrants may interpret the current market strength as a sign to dive in, leading to a potential sentiment mismatch.

Looking Ahead: Uncertainties and Opportunities

As Bitcoin navigates this complex landscape, the question remains whether this bullish momentum can be sustained. While technical indicators and macroeconomic signals point towards continued volatility, the underlying sentiment reflects a cautious optimism. With the next few weeks likely to shape the course of Bitcoin’s journey, traders and investors will be watching closely, balancing the allure of potential gains against the risks posed by the unpredictable economic environment.

As always, the crypto world is a realm where fortunes can change in the blink of an eyeβ€”a reality that keeps both veterans and newcomers on their toes.

Source

This article is based on: BTC bulls get 'biggest signal' β€” 5 Things to know in Bitcoin this week

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