- Bitcoin stabilizes near $96K as TOTAL2 recovers $1.04T in early May, hinting at altcoin upside
- TOTAL2’s Fibonacci levels suggest altcoins may rally if breakout above $1.04T holds this week
- Santiment warns of meme distractions while utility tokens gear up for May breakout attempts
Bitcoin in May 2025, is a metric closely looked at for market direction, with a flurry of bold price predictions from top financial analysts. Reinforcing potentially bullish sentiment around government adoption, U.S. Senator Cynthia Lummis stated on May 2nd that President Donald Trump supports her proposed “BITCOIN Act.”
This legislation outlines a plan for the U.S. government to build a strategic reserve of 1 million Bitcoin over five years. The Act is also seen as the path for the US to become the single largest Bitcoin holder alongside ongoing accumulation by long-term holders as noted by Glassnode.
Bitcoin Accumulation Trends Persist Among Long-Term Holders
On-chain data from analytics firm Glassnode complements the institutional adoption theme, showing persistent Bitcoin accumulation by long-term holders (LTHs).
Glassnode’s analysis indicates that long-term holders continue to accumulate Bitcoin, showing confidence even after purchases made above $95,000.
Historically, these long-term investors tend to increase selling (distribution) more noticeably near the $99,900 price point, according to Glassnode’s data patterns. This suggests $99.9k could act as a significant resistance level; breaking above it might open the door for price discovery above the key $100,000 mark.
Altcoin Season Hopes Tempered by Meme Coin Frenzy
With Bitcoin showing strength and historical patterns often seeing altcoins follow its lead, attention turns to whether utility-focused altcoins are set for major gains this May. However, Santiment’s market analysis brought out a rather complicating factor for a broad “altcoin season.”
Santiment observed some profits rotating into altcoins following Bitcoin’s recent move back into the $94,000-$96,000 range. But the firm also noted a simultaneous, significant spike in social media discussions around meme coins. This indicates much of the current speculative interest is currently focused on high-risk, possibly high-reward meme assets rather than established utility projects.
Santiment cautioned that increased social media chatter using terms like “altseason” can sometimes act as a contrarian indicator.
TOTAL2 Chart Shows Mixed Signals for Altcoin Market Cap
Technical analysis of the TOTAL2 chart (total crypto market cap excluding Bitcoin) offers a view of the broader altcoin market. On the 4-hour chart, if the current upward momentum sustains, and TOTAL2 breaks above the immediate resistance around the current price level (approximately 1.04T USD), the Fibonacci extension levels provide potential upside targets.
Related: Bitcoin Forecast Models Set $250K as the May Target for 2025 Cycle
The 1.618 Fibonacci extension level sits around 1.12T USD, the 2.618 level around 1.18T USD, and the 4.236 level around 1.26T USD. These levels could act as significant resistance points where profit-taking might occur.
While the current price level of 1.04T USD acts as immediate support, a break below this could lead to further declines. The psychological level of 1T USD could also act as a significant support.
Related: Bitcoin (BTC) Price Prediction May 2025: Can BTC Break Above $96K or Face Resistance?
The RSI remains close to neutral at 48.53. On the other hand, the MACD indicator just confirmed a bearish divergence with the MACD line (blue) breaking above the orange single line, suggesting that the bears maintain control.
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