Bitcoin and Altcoins Show Strong Recovery Signals Amid Market Shifts
Market analysts have identified five key divergence signals indicating a potential recovery for Bitcoin and altcoins. Three signals favor Bitcoin, while two support altcoins, suggesting a bullish turn in the cryptocurrency market. Historically, Bitcoin has shown an inverse correlation with the DXY Index (US Dollar Index), but this relationship synchronized from September 2024 to March 2025. However, the pattern abruptly reverted in April 2025 following new US tariff announcements, reigniting the traditional dynamic. This shift has reignited optimism among investors, as the divergence signals often precede significant price movements. The current market conditions, as of May 2025, present a unique opportunity for recovery, with Bitcoin and altcoins poised to capitalize on these emerging trends. Analysts are closely monitoring these developments, which could mark the beginning of a sustained upward trajectory for digital assets.
5 Divergence Signals Suggest Bitcoin and Altcoins Poised for Recovery
Market analysts are observing a critical shift in cryptocurrency momentum as five divergence signals emerge—three favoring Bitcoin and two supporting altcoins. Historically, Bitcoin exhibits an inverse correlation with the DXY Index (US Dollar Index), but this relationship synchronized from September 2024 to March 2025. The pattern reverted abruptly in April following new US tariff announcements, reigniting the traditional inverse dynamic.
Divergence—a technical indicator where asset prices and metrics move counter to established trends—often precedes momentum reversals. The current signals imply growing bullish sentiment for crypto assets. Bitcoin’s decoupling from the DXY suggests renewed institutional interest, while altcoins show independent strength metrics unrelated to BTC’s movements.
Dormant Bitcoin Movements Surge by 121% in Q1 2025 Amid Sentiment Shifts
Long-term bitcoin holders are awakening. Over 62,000 dormant BTC moved in Q1 2025, more than double the 28,000 shifted during the same period in 2024. March saw particularly heavy activity with 19,296 BTC on the move, dwarfing January’s 3,034 BTC and February’s 5,678 BTC.
The surge suggests seasoned investors are repositioning in response to macroeconomic signals or anticipating market shifts. CryptoQuant data reveals this accelerating trend of previously idle coins returning to circulation—a potential precursor to increased volatility or changing holder demographics.
Bitcoin Surge Tests Key Resistance as Analysts Debate Next Move
Bitcoin’s 11% weekly surge has reignited bullish sentiment, with the cryptocurrency reclaiming critical price levels last seen in late March. The $85,000 breakthrough on Friday preceded a Tuesday push past $90,000, where BTC has maintained support for 24 hours.
Market observers remain divided on sustainability. Some see the recovery from April’s sub-$80,000 lows as the precursor to a fresh rally, while others emphasize the need for consistent level-holding. Technical analyst Daan Crypto Trades notes Bitcoin has established "solid" footing at current ranges.
Bitcoin Corrects Amid Profit-Taking Despite Strong Institutional Demand
Bitcoin’s price retreated slightly to $92,000 on Thursday, trimming its 8.55% weekly gain as traders locked in profits. The pullback comes despite sustained institutional interest, with US spot ETFs recording $916.91 million in inflows Wednesday—marking their third consecutive day of positive flows.
Market sentiment remains buoyed by macroeconomic tailwinds. The TRUMP administration’s softer stance on Federal Reserve policy and China trade tensions has fostered risk appetite across financial markets. Technical analysts suggest the dip may be shallow, with a potential rally toward $97,000 still in play.
BlackRock’s IBIT Sees $643M Daily Inflow as Bitcoin ETFs Hit $917M High
BlackRock’s iShares Bitcoin Trust (IBIT) recorded a staggering $643 million in net inflows on Wednesday, marking its highest single-day surge since January. The influx contributed to a total of $917 million flowing into all U.S.-listed spot Bitcoin ETFs, signaling a robust institutional turnaround.
This four-day streak of inflows has seen $2.3 billion pour into these funds, doubling the amount observed during a comparable 10-day streak in March. Analysts attribute the rebound to renewed investor confidence, with Bitcoin increasingly viewed as a hedge against inflation and geopolitical risk.
Long-Term Bitcoin Holders Accumulate 635K BTC Amid Diverging Market Sentiment
Bitcoin’s market dynamics reveal a stark contrast between long-term holders and short-term traders. Since January, investors holding BTC for more than 155 days have added 635,000 coins to their portfolios, signaling unwavering conviction in the asset’s long-term value proposition.
Derivatives traders amplify the bullish narrative, aggressively selling put options to capitalize on upside potential. The 1.38:1 buy-to-sell ratio between LTHs and STHs suggests institutional-grade accumulation is outpacing retail profit-taking.
