Crypto Market Faces Downward Pressure as Bitcoin Struggles
On Saturday, May 17, the crypto market saw a decline, with most altcoins losing some of their recent gains. Bitcoin (BTC) fell from its high of $105,000 to $103,000. Notable losers included Pi Network (PI), Bonk (BONK), Floki (FLOKI), and Pudgy Penguins (PENGU), each dropping over 10%.
Bitcoin frequently enough dictates the crypto market’s direction. When it rises, altcoins usually follow. Recently, when Bitcoin broke $90,000 and hit $105,900, altcoins surged. Though, as Bitcoin failed to cross $105,000 and retest its all-time high, altcoins began to fall.
Profit-taking by investors who benefited from the recent rally is another reason for the decline.For instance, Bonk, which was up nearly 200% from its April low, dropped 26% from its monthly high.Floki and PENGU also saw significant losses after significant gains.
Global market risks are also affecting crypto prices. Despite a US-China truce,tariffs remain,and trade talks with Japan have stalled. This increases the risk of a US recession, with Polymarket traders estimating a 38% chance. Moody’s downgraded the US due to high public debt and poor fiscal policies.
Will the crypto market recover? Watch Bitcoin. On the daily chart, it might potentially be forming a bullish pennant and cup-and-handle pattern. If it breaks above $109,300, it could lead to a strong rebound for altcoins.
