Bitcoin Bulls May Regain Momentum Despite April's Cautious Close

As April comes to a close, bitcoin is adopting a defensive stance at $78,203.28, yet historical trends indicate that any downturns may be short-lived, potentially setting the stage for an upward surge in the coming weeks. Since 2013, May has been a positive month for the largest cryptocurrency, with seven out of 13 years experiencing gains, resulting in an average return of approximately 8%. Following April's 10% increase, this seasonal pattern suggests that the broader uptrend may remain intact, a notion supported by similar bullish trends in the S&P 500, which is currently near record highs. The continuous net monthly inflows into U.S.-listed spot exchange-traded funds, with over $1.8 billion this month, indicate strong institutional demand and bolster the bullish case. However, traders must monitor bond markets, as rising yields pose a challenge to risk assets. Analysts warn of potential headwinds, including a global economic downturn, and advise caution despite the positive seasonal outlook. The impending crossover of the 50-day and 100-day averages, known as a bullish crossover, may signal further upside for bitcoin, but its reliability, particularly in bear markets, is questionable.