Bitcoin is knocking on the door of a new all-time high as the cryptocurrency market buzzes with optimism this May. The digital currency, which has recently surged past the significant $100,000 mark, is now eyeing its previous peak of $109,588. With robust inflows into BlackRock’s spot Bitcoin ETF and a rally in select altcoins, many are questioning if this is the dawn of a new era for digital assets.
Bitcoin and the ETF Surge
The ascent of Bitcoin has been nothing short of remarkable, with the cryptocurrency managing to hold onto a solid 10% gain over the past week. A decisive factor in this bullish trend is the steady inflow into the BlackRock spot Bitcoin ETF—an indicator of growing institutional interest. According to data from Farside Investors, the ETF has enjoyed an influx of funds for 19 consecutive days, amassing a staggering $1.03 billion in the latest trading week alone. This follows a pattern of institutional adoption, which we detailed in Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow.
Here’s the catch: while Bitcoin’s trajectory appears bullish, the rally has also pushed the relative strength index (RSI) into overbought territory. This suggests that a temporary pullback or consolidation could be on the horizon. Analysts are closely watching the $100,000 to $96,626 support zone. A bounce from this area could propel Bitcoin to break past its all-time high, possibly reaching $130,000 if the momentum continues.
Altcoins Join the Rally
Bitcoin isn’t the only game in town. Altcoins like Ethereum (ETH), Dogecoin (DOGE), Pepe (PEPE), and Cosmos (ATOM) are also experiencing significant upward momentum, prompting some market watchers to declare the beginning of an “altseason.” Ethereum, for instance, has seen its price skyrocket from $1,808 to $2,600 in just a couple of days, driven by aggressive buying.
According to crypto analyst Jamie Timmons, “Ethereum’s recent move is a testament to the underlying strength in altcoins. It wouldn’t be surprising to see ETH making a run towards $3,000 soon.” However, skepticism remains among some traders who note that many altcoins are still far from their previous peaks, suggesting that this rally may be more of a recovery than a new altseason.
Dogecoin’s recent surge past the $0.21 resistance is another highlight. With selling pressure at $0.26, the meme coin could retest its breakout level before possibly rallying to $0.31. But for those betting on further gains, the bulls need to maintain the price above the 20-day EMA to keep the momentum alive.
The Broader Market Context
The current market dynamics are a stark contrast to the bearish sentiment that dominated much of the crypto space in previous years. With increasing institutional interest, as evidenced by the ETF inflows, and a broader acceptance of digital currencies, the landscape appears to be shifting. This optimism is reminiscent of past market movements, such as when Bitcoin Jumps Above $97K as Traders Optimistic U.S.-China Trade Deal Possible.
However, there are still hurdles to overcome. Market volatility remains a constant companion, and regulatory uncertainties continue to cast a shadow on the horizon. The potential for sudden reversals means that investors should remain cautious, even as the market paints a predominantly bullish picture.
Looking Ahead
As Bitcoin inches closer to its all-time high, the question on everyone’s mind is whether it can sustain this upward momentum. The coming weeks will be pivotal, with many eyes on the $109,588 mark. The outcome could set the tone for the rest of the year, influencing both Bitcoin and the altcoin market.
While enthusiasm is palpable, it’s essential to remember the inherent risks in the crypto space. As always, investors are advised to conduct thorough research and consider their risk tolerance before diving into the market.
In a world where Bitcoin is once again flirting with its all-time highs, only time will tell if this rally marks the start of a new chapter or if it’s just another page in the ongoing saga of digital currencies.
Source
This article is based on: Bitcoin price inches closer to new all-time high as ETH, DOGE, PEPE and ATOM rally
Further Reading
Deepen your understanding with these related articles:
- Nasdaq Seeks SEC Approval to List 21Shares Dogecoin ETF
- Litecoin Surges 7% as SEC Likely to Approve Spot ETF with 90% Odds: Analyst
- Ethereum bulls show interest as traders’ confidence in ETH’s $1.8K level improves
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
