Bitcoin Rebounds 2.5% to $104,000 After Brief Dip, Altcoins Decline

On May 16th, Bitcoin experienced a brief dip to just above $101,000 before recovering to over $104,000. This rebound was in stark contrast to the performance of altcoins, which faced a notable decline, showcasing weaker performance across the board. According to YouHodler’s Chief Market Officer, Ruslan Lienkha, this recent pullback is likely a mere retracement within an overarching mid-term uptrend. The stock market’s momentum has waned following the U.S.-China tariff postponement, prompting short-term traders to secure profits, which has similarly affected higher-risk assets such as Bitcoin.

As explained by CoinPanel’s Trading Automation Expert, Kirill Kretov, price movements under 5% are typically viewed as market noise. Much of this volatility can be attributed to profit-taking, as traders capitalize on gains from the recent bullish trend. The diminished liquidity means that even slight sell-offs can lead to substantial corrections. Nonetheless, while short-term fluctuations occur, the broader price trajectory remains robust, lacking indications of an imminent peak.

Furthermore, K33 Research’s Senior Analyst, Vetle Lunde, highlighted that Bitcoin has recently come out of one of the longest stretches of negative funding rates, indicating cautious market positioning. This scenario mirrors historical patterns from October 2023 and October 2024, which were notably distinct from prior price peaks. Lunde expresses optimism, suggesting that Bitcoin’s performance above $100,000 does not signify a bubble, but instead, sets the stage for potential new all-time highs.

Additionally, Steno Research notes that a significant driver for cryptocurrencies is the concealed expansion of private credit in the U.S. and Europe. Current leading indicators hint at an upcoming improvement in the global financial landscape, primarily fueled by the weakening U.S. dollar this summer.

Bitcoin experienced a notable rebound on May 16th, surging past $104,000 after briefly dipping to just above $101,000. This recovery was in stark contrast to the performance of altcoins, which faced a significant decline during the same period. The largest cryptocurrency by market capitalization had earlier in the week briefly surpassed the $105,000 mark, but it fell 1.92% to $101,726.19 before making its comeback. The price surge to $104,271 was accompanied by a key momentum indicator flashing its strongest bullish signal since the 2024 halving, suggesting a potential upward trajectory for the cryptocurrency.

Analysts noted that Bitcoin has been trading within a range of $102,500 to $104,000, with investors awaiting fresh catalysts to drive the price further. The daily upside targets remain between $102,000 and $104,000, although some cooling is possible due to RSI heat. Any dip toward $98,000 to $95,000 could present buying opportunities, according to analysts' forecasts. A decisive move above $104,000 with volume would confirm the next leg higher, potentially retesting the $105,700 high and moving toward $107,000. If the bullish scenario plays out, Bitcoin could revisit $105,716 and potentially surpass it, driven by factors such as peace talks and Fed hype. Despite breaking above the symbolic $100,000 mark, Bitcoin has trailed Ethereum's percentage gains, indicating a shift in market dynamics.