- Bitcoin discussions appear to be waning, with traders now focusing more on altcoins
- The Memecoin mania remains strong, but this could be a warning sign for traders
Bitcoin [BTC] has regained almost all its gains after breaking past the $67,000 resistance level on May 20. It rose to $71.9,000, but fell again to $67,000 on May 23.
This consolidation implies that Bitcoin’s bullish strength is not as high as investors had hoped. In fact, a recent AMBCrypto report examined some relevant Bitcoin metrics and found that many of them remained bearish.
Memecoins have managed to arouse public interest
In a message on X (formerly Twitter), Santiment shared some insights into the crypto trends on social media. Memecoins have attracted more public attention since mid-April due to their superior performance as a sector.
Tokens such as dog hat [WIF]FLOKI [FLOKI]and Shiba Inu [SHIB] achieved good performance over the past week. Pepe [PEPE] also saw notable gains over the past two weeks, with the altcoin up 63% since April 20. This came at a time when Bitcoin was trying to break past $67,000 but failed to see a strong bullish outcome.
The high involvement in memecoins could be a sign that the market is greedy and speculative and not in a phase of organic development, a phase where the public pursues tokens with good technology and usability.
Now, Bitcoin ETF inflows have been positive lately and the month of May also ended well. However, it remains to be seen whether that is enough to start a new rally this week.
The data also showed that Bitcoin discussions were sliding downward. According to Santiment, this was because traders were increasingly fixated on altcoins for potential gains, while Bitcoin faltered below the $70,000 resistance.
Large-cap momentum has been mostly bullish
The RSI at the one-day interval revealed that most major tokens were near or above the neutral 50 mark, indicating bullishness. Ethereum [ETH] and Solana [SOL] were the strongest with values of 67 and 55 respectively.
Meanwhile, Cardano [ADA]XRP and Avalanche [AVAX] struggled to gain bullish traction on the charts.
Here it is also worth noting that the trading volume of major altcoins has fallen dramatically compared to March. Crypto analyst Axel Adler pointed this out in a post on X, claiming that Bitcoin’s lack of momentum has affected market sentiment.
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The volatility and trading volume behind Bitcoin have declined since March and the price continues to fluctuate between $60,000 and $72,000. Investors should be patient, while traders should watch out for range formations and not be surprised by false breakouts.