The leading cryptocurrency has seen significant volatility in recent days, with many analysts suggesting bulls may soon regain control.
Meanwhile, the popular meme coin Shiba Inu reached a new record for total holders, while Ethereum (ETH) shows signs of potential weakness.
Bitcoin’s Recent Swings
Bitcoin experienced an eventful week, climbing to nearly $83,000 on May 6 — its highest level since late January. Bears, however, pushed back and brought the price down to around $79,800 (CoinGecko). Despite this pullback, a number of market participants remain optimistic that the broader rally will continue.
One social media commentator observed that BTC appears to be “rising smoothly, forming a bullish engulfing candle,” and suggested that the May candlestick could close larger than April’s, a bullish sign based on candlestick theory.
John Bollinger, creator of the Bollinger Bands indicator, also weighed in. He revealed that his fund’s Tactica program recently opened a new position and is now fully invested in Bitcoin after its trend model turned positive.
Not everyone shares this optimism. Some analysts warn the bull move could be a trap. One commentator described the recent upswing as “the biggest Bitcoin bull trap of this cycle,” even predicting a potential crash toward $42,000.
Shiba Inu Hits New Holder High
Shiba Inu, which has promoted itself as a Dogecoin rival, made headlines after announcing major ecosystem updates. The team reported that total SHIB holders increased by 1,100 in a single day, reaching a new all-time high of 1,585,022 holders.
The project also recorded a sharp rise in token burns, daily active addresses, and trading volume, indicating increased network engagement. Despite these on-chain improvements, SHIB’s price remains under pressure: it is down about 53% over the past year.
In addition, Shiba Inu lost its position as the second-largest meme coin as MemeCore (M) climbed rapidly to claim that spot.
Is an Ethereum Downturn Imminent?
Ethereum briefly rose above $2,400 on May 6 but quickly retreated and now trades under $2,300. Some analysts warn of further downside risk. One commentator said ETH has “lost its parabola,” noting that failure to reclaim the $2,350 level could lead to a more severe decline.
Whale activity adds weight to the bearish case. Large holders have reduced their combined ETH balances from a peak of 15.95 million ETH in October of last year to roughly 12.52 million ETH today, a decline that signals waning confidence among major investors and could prompt smaller holders to sell.
At the same time, there are bullish signals. Analysts recently pointed out a golden cross formation on Ethereum’s price chart in late April, a technical pattern often associated with potential rallies. This divergence of signals — whales selling while technical indicators flash bullish — leaves ETH’s near-term direction uncertain.
Overall, the crypto market remains in a state of flux: Bitcoin’s pullbacks coexist with optimism from some trend models, Shiba Inu shows growing on-chain activity despite price weakness, and Ethereum faces mixed signals as both whale behavior and technical patterns influence sentiment.