Bitcoin Consolidates Below $111K as BlackRock Makes Massive Purchase
After reaching new highs around $111,800, the Bitcoin price is currently consolidating as it drops below $111K, indicating a potential small correction phase. However, the market received a significant boost as BlackRock purchased another 8000 BTC worth over $877 million, marking the largest inflow in May so far. This influx from institutional investors suggests a bullish sentiment in the market.
Despite the recent surge in Bitcoin, retail traders have not yet started buying, leaving room for further upside potential. This lack of retail participation could lead to a sustained upward trend in the near future.
Altcoins Coiling Up as Altseason Begins
While Bitcoin remains in a consolidation phase, altcoins like Ethereum, XRP, and Cardano have been coiling up at a slower pace. This delay in the start of the Altseason indicates a shift in market dynamics. The market capitalization of altcoins, excluding Bitcoin and Ethereum, has rebounded from a crucial support range and is currently just 20% away from its previous highs.
Moreover, the altcoin market cap has surpassed a key resistance level, signaling a potential push towards new highs. If this momentum continues, altcoins could see significant gains in the coming days.
The latest market rise has propelled altcoins above key technical indicators like the conversion line and the baseline. If this trend continues, the Ichimoku cloud could experience a bullish crossover, potentially pushing altcoin market cap towards the $1.13 trillion mark. This could mark the beginning of Altseason 2025, with altcoins reaching new all-time highs.
Bitcoin Dominance Declines as Altcoins Gain Momentum
Meanwhile, Bitcoin dominance is on a downward trend after briefly recovering above 65%. This decline in dominance indicates a shift in liquidity from Bitcoin to altcoins, suggesting growing interest in alternative cryptocurrencies.
To further fuel the altcoin rally, Bitcoin price needs to hold between $105K to $108K. A drop in Bitcoin value coupled with declining dominance could provide a strong catalyst for an Altseason in the second half of 2025.
Overall, the cryptocurrency market is poised for further upside potential, with institutional interest and technical indicators pointing towards a bullish outlook for both Bitcoin and altcoins.