Bitcoin Bulls May Regain Momentum Despite Current Defensive Posture

As April comes to a close, Bitcoin is currently on the defensive at $78,725.36, but historical trends suggest that any downturns may be short-lived, potentially paving the way for an upward move in the coming weeks. Since 2013, May has been a bullish month for the cryptocurrency, with gains in seven out of the past 13 years, averaging around 8% returns. Following April's 10% increase, this seasonal pattern indicates that the broader uptrend may remain intact, supported by similar bullish trends in the S&P 500. Back-to-back net monthly inflows into U.S.-listed spot exchange-traded funds (ETFs) totaling over $1.8 billion this month, after $1.32 billion in March, demonstrate strong institutional demand and bolster the bullish case. However, traders must remain vigilant due to rising yields in bond markets posing a headwind to risk assets. Analysts caution that despite the bullish outlook, risks such as global economic instability, particularly from the Iran war and energy market disruptions, could impact the market. The impending crossover of the 50-day average price above the 100-day average, known as a bullish crossover, may signal strengthening short-term momentum and potential further upside for Bitcoin prices.