Bitcoin Surges 10% to $107,000 as Altcoins Rally

Bitcoin's price surged to nearly $106,000 today, briefly touching $107,000 before retreating. While other assets like stocks and gold faced challenges, Bitcoin demonstrated resilience. Ethereum led the altcoin rally with a 5% increase, while Solana, XRP, BNB, and Dogecoin saw gains ranging from 2% to 4%.

Market experts have noted that Bitcoin is on the verge of forming a "golden cross," a bullish indicator that typically signals a strong rally. Historically, this pattern has preceded significant price surges of 121% and 68%. Investors are now closely watching Bitcoin to see if it can reach $110,000 soon, with the expectation that altcoins could perform even better.

However, analyst Benjamin Cowen has identified a contrasting pattern. He observed that every time Bitcoin experiences a "death cross," where the 50-day moving average falls below the 200-day moving average, it often reaches a local low around that time. This phenomenon occurred in the third quarter of 2023 and 2024, as well as in the second quarter of this year. Cowen warns that if the third quarter of this year is weak, Bitcoin could experience another dip, potentially leading to further downside.

Analyst Ali Martinez also pointed out that Bitcoin might be losing momentum after encountering strong resistance. The appearance of a "hanging man" candlestick pattern on the chart often signals a potential price drop. Additionally, momentum indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are showing signs of weakness, indicating that the upward momentum is fading despite the rising price.

Despite these concerns, Bitcoin ETFs in the U.S. saw a substantial inflow of $667 million on May 19, marking the largest inflow in over two weeks. This influx indicates a resurgence in institutional interest. Data from Farside Investors reveals that spot BTC ETFs have recorded inflows on 18 out of the last 21 days, attracting $6.9 billion in capital over just three weeks.

According to a recent analysis by Cryptoquant, Bitcoin's latest rebound appears healthier than previous rallies. In past bull runs, Bitcoin would quickly overheat and crash after hitting new highs. However, this time, Bitcoin is recovering without showing any warning signs, and the buying activity and market conditions appear balanced. This suggests that Bitcoin could continue its upward trajectory without a significant drop, indicating a more sustainable break of its all-time high.