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| By Beth Canova |
Traditional and crypto markets alike saw a cooldown in April after a hot streak and record highs made in Q1.
Now, some assets are showing signs of stabilization and even rebounds.
Before I turn to the opportunities I see in crypto, I want to touch on one big one in TradFi. See, Weiss Ratings founder Dr. Martin Weiss has just revealed a brand-new tool that is so powerful, I had to share it with you.
It’s an AI-powered stock trading system that Martin is calling the biggest breakthrough of his 53-year career.
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In fact, over ten years of testing, including real-time testing, it beat the S&P 500 by nearly 51-to-1.
And that 10-year timeframe includes some of the best of times … and some of the worst.
It beats the S&P with less hassle, less uncertainty — less RISK — than would normally be possible using any other trading system, any hedge fund or in any other asset class.
And you can learn more about it, and how you can benefit from it, in Martin’s latest briefing, New AI Trading System Beats S&P by 51-to-1.
Now, let’s turn to the crypto market.
Bitcoin’s (BTC, “A”) recent display of strength — having now rebounded to the $62,500 level from its drop to about $56,000 — is impressive. And several top altcoins have shown impressive recoveries, themselves.
But despite this, the market is showing a mixed bag.
For example, the U.S. Bitcoin spot ETFs experienced significant outflows to the tune of $156 million last week. Coinshares attributes this to automated sell orders triggered by a 10% dip below the average purchase price since launch.
However, Hong Kong's successful spot ETF launch countered this with $307 million in inflows during its first week, highlighting regional differences.
Interestingly, institutions seem to be warming up to altcoins, with Ethereum (ETH, “B+”) breaking its seven-week outflow streak with $30 million of institutional inflows.
Retail demand, on the other hand, remains volatile. And altcoins will remain vulnerable to big price fluctuations when Bitcoin dips without retail support.
However, the impressive rallies my colleague Dr. Bruce Ng mentioned yesterday suggest that investors are becoming more active and opportunistic, seizing buying opportunities at local price lows.
These are the signs we need to look for.
They speak to a shift in sentiment away from the fear, uncertainty and doubt we’ve seen since Bitcoin’s pre-halving correction … and to the bullish, risk-on mentality we’ll need to ignite the next rally.
Now, looking at the current action, Bitcoin price is testing a breakout above the yellow trendline:
A successful retest could lead to a rally toward the $65,800 resistance zone and Bitcoin's overall sentiment leans bullish.
In the meantime, the price action for ETH continues to adhere to a descending channel:
While this may seem concerning, historically, these patterns tend to resolve with upward breakouts more frequently than downward ones.
But a potentially significant event for Ethereum volatility is approaching. The Securities and Exchange Commission's first response regarding the spot ETH ETF application is due on May 23.
This coincides with my colleague, cycle analyst Juan Villaverde's prediction of a cycle low sometime in May.
The initial SEC response is expected to be negative, raising the question of whether this has already been factored into Ethereum's price.
Regardless of the outcome, it's important to remember that any downward volatility is temporary.
A significant surge in ETH could trigger a domino effect, boosting altcoin prices as well, and potentially kick off the second phase of this bull market.
In short: The market is showing signs that leading crypto projects are shaking off this correction and are ready for the next leg up.
While the broad market is playing catch up, savvy investors should make sure they’re invested in their favorite projects now.
Our team anticipates big things from the next rally. So, you’ll want to be ready as soon as possible.
Best,
Beth Canova
