Key Points
- Bitcoin’s bullish strength seems to be diminishing, with traders shifting focus to altcoins and memecoins.
- Despite positive Bitcoin ETF inflows, Bitcoin discussions are decreasing as altcoins gain more attention.
Bitcoin [BTC] has recently seen a significant pullback, erasing most of its gains after breaching the $67k resistance level on 20 May. The cryptocurrency surged to $71.9k, only to fall back to $67k by 23 May.
This pattern indicates that Bitcoin’s bullish momentum may not be as robust as investors had hoped. A recent report suggests that many Bitcoin metrics continue to lean bearish.
Memecoins Gain Popularity
According to a post on X, memecoins have been garnering increased public interest since mid-April, largely due to their strong performance. Tokens such as dogwifhat [WIF], FLOKI [FLOKI], and Shiba Inu [SHIB] have all recorded commendable performances over the past week. Pepe [PEPE] also saw significant gains over the past fortnight, up by 63% since 20 April.
This surge in memecoin engagement could indicate a market driven by greed and speculation, rather than organic growth and technological utility.
Bitcoin ETF Inflows Remain Positive
Despite the shift in focus to altcoins, Bitcoin ETF inflows have remained positive, and May ended on a good note. However, it is uncertain whether this will trigger another rally.
Data also indicates a decline in Bitcoin-related discussions. According to Santiment, this is due to traders increasingly focusing on altcoins for potential gains, while Bitcoin struggles below the $70k resistance.
The majority of large-cap tokens showed bullish momentum, with most near or above the neutral 50-mark on the RSI. Ethereum [ETH] and Solana [SOL] were the strongest performers, with readings of 67 and 55 respectively.
Conversely, Cardano [ADA], XRP, and Avalanche [AVAX] struggled to gain bullish traction. It’s also worth noting that the trading volume of major altcoins has significantly decreased compared to March.
Crypto analyst Axel Adler suggested that Bitcoin’s lack of momentum is impacting market sentiment.
The volatility and trading volume of Bitcoin has been on the decline since March, with the price currently trading within the $60k-$72k range. This requires investors to exercise patience and traders to be cautious of range formations and false breakouts.
