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A quiet weekend for Bitcoin, but a Monday morning breakout changed the tone quickly. Bitcoin has finally emerged from its 10-day consolidation period, surging ahead while leaving much of the broader market lagging. This breakout has pushed Bitcoin dominance up further, now sitting at 64%, as it continues to outperform the major altcoins.
Looking ahead, the macroeconomic calendar remains light with no major catalysts expected—implying that organic price action will likely dictate sentiment and direction this week. With Bitcoin now just 3% away from its all-time high, all eyes are on whether it can make the push this week.
Sentiment Reverses Sharply from April Lows
Despite last week’s consolidation, market sentiment remains distinctly bullish—a notable reversal from just a month ago. In April, the American Association of Individual Investors (AAII) reported that 61.9% of its members expected further downside over the next six months. This month’s figures tell a very different story: bearish expectations have dropped sharply to 44.4%—the lowest reading since mid-February.
On the other side, bullish sentiment has surged by 15% month-on-month, marking the second-largest monthly gain since November 2023. This shift has ended an 11-week streak of bearish sentiment readings above 50%, signalling a significant change in investor outlook.
The market's optimism is also mirrored in the fear and greed indexes: Bitcoin’s index currently sits at 74, and the S&P 500 at 71—both brushing up against the “extreme greed” threshold of 75. That’s a massive jump from earlier lows of just 15 for Bitcoin and 3 for the S&P 500.
Blackrock spot Bitcoin ETF Inflows and the Centralisation Dilemma
Since the launch of the Spot Bitcoin ETF on 10 January 2024, the scale of inflows has been nothing short of extraordinary. In just 16 months, BlackRock has amassed 631,962 BTC—equivalent to approximately $65 billion—through its ETF product, making it one of the largest holders globally.
While this development has provided institutions with a regulated avenue for Bitcoin exposure, it’s not without controversy. Investors in the ETF do not receive actual spot Bitcoin, but rather shares that track the asset’s price. This structure limits decentralised ownership and instead channels an increasing share of the supply into centralised control.
Currently, BlackRock holds around 3% of the total Bitcoin supply—a staggering concentration that continues to raise concerns over Bitcoin’s founding principles of self-custody and decentralisation.
Stormrake Spotlight: Bittensor (TAO) ($418)
Stormrake Spotlight: Bittensor (TAO) ($418)
TAO has ended its run of bearish candles after a volatile 24 hours, where it saw a 10% trading range from high to low. It may have formed a higher low at $3.95, signalling a potential continuation of its bullish structure.
Despite printing a neutral green candle yesterday, today has started on the back foot—TAO dropped 2% in the first 30 minutes of trading. If $3.95 holds, TAO remains structurally intact. However, to confirm a higher high, the token needs to break above $490.
The contrast with Bitcoin is telling: despite BTC breaking out strongly, TAO and altcoins remain under pressure—further highlighting Bitcoin’s dominance and strength in the current market phase.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin has finally pushed above the critical $104K resistance level after spending the past 10 days battling it. An initial breakout attempt overnight was met with a sharp retracement, but price found strong support on the retest of $104K—suggesting a successful flip of this level from resistance into support.
With bulls firmly in control, the next and only meaningful target now is the all-time high.
BTC Total ETF Flows for 18 May: (data not available at the time of writing)
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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