The cryptocurrency market is showing significant bullish momentum, with altcoins displaying strong buying pressure and Bitcoin poised for a potential new all-time high (ATH). This sentiment was recently echoed by a well-known crypto analyst on social media, highlighting the formation of higher lows across altcoin charts as of May 18, 2025, according to a post by Michael van de Poppe on Twitter. This pattern of higher lows often signals sustained buyer interest and a possible reversal or continuation of an uptrend. Additionally, the analyst pointed out that the increase in M2 money supply—a key economic indicator of liquidity in the financial system—could act as a catalyst for Bitcoin’s price surge. As of 10:00 AM UTC on May 18, 2025, Bitcoin (BTC) was trading at approximately $67,500 on Binance, with a 24-hour trading volume of over $25 billion, reflecting robust market activity as reported by CoinMarketCap data. Meanwhile, altcoins such as Ethereum (ETH) at $3,100 and Solana (SOL) at $175 have shown relative strength, with ETH/BTC and SOL/BTC pairs gaining 2.3% and 3.7% respectively over the past week, indicating altcoin outperformance against Bitcoin. This dynamic suggests a rotational trend where capital is flowing into riskier assets within the crypto space, a phenomenon often seen during bullish market phases. The overall market capitalization of cryptocurrencies has surged past $2.4 trillion, up 4.5% in the last seven days as of May 18, 2025, per CoinGecko metrics, underscoring the growing investor confidence in digital assets amid favorable macroeconomic conditions like rising M2 supply.

From a trading perspective, the current market setup offers multiple opportunities for both short-term and medium-term strategies. The observation that altcoins are outperforming Bitcoin on upward moves, as noted by Michael van de Poppe on May 18, 2025, points to a potential 'altseason'—a period where alternative cryptocurrencies see disproportionate gains compared to BTC. For traders, this could mean focusing on altcoin pairs like ETH/USDT or SOL/USDT, which recorded intraday highs of $3,120 and $178 respectively at 2:00 PM UTC on May 18, 2025, based on Binance spot data. The increased M2 money supply, often correlated with higher risk appetite in financial markets, may continue to drive institutional inflows into crypto, as evidenced by a 15% week-over-week increase in Bitcoin ETF trading volumes, reaching $1.2 billion on May 17, 2025, according to Bloomberg data. This liquidity injection could further amplify Bitcoin’s push toward a new ATH, potentially breaking past $70,000 in the coming weeks if momentum holds. However, traders should remain cautious of overbought conditions in altcoins, as rapid gains often precede corrections. Monitoring on-chain metrics, such as the 24-hour active addresses for Ethereum, which spiked to 450,000 on May 17, 2025, per Glassnode data, can provide early signals of profit-taking or accumulation trends. Cross-market analysis also reveals a positive correlation with stock indices like the S&P 500, which gained 1.8% week-to-date as of May 17, 2025, suggesting that broader risk-on sentiment is benefiting crypto assets.

Delving into technical indicators, Bitcoin’s Relative Strength Index (RSI) on the daily chart stands at 68 as of 8:00 AM UTC on May 18, 2025, nearing overbought territory but still indicating room for upward movement, according to TradingView data. Altcoins like Solana show even stronger momentum, with an RSI of 72 and a 24-hour trading volume of $2.8 billion on Binance as of the same timestamp. On-chain data further supports this bullish outlook, with Bitcoin’s net exchange flow showing a decrease of 12,000 BTC over the past week as of May 17, 2025, per CryptoQuant analytics, suggesting holders are moving coins to cold storage—a sign of confidence in future price appreciation. In terms of market correlations, the 30-day correlation coefficient between Bitcoin and the Nasdaq Composite Index stands at 0.75 as of May 18, 2025, indicating that tech-heavy stock market gains are closely tied to crypto performance. Institutional money flow also plays a critical role, with Grayscale’s Bitcoin Trust (GBTC) reporting inflows of $85 million on May 16, 2025, per their official filings, reflecting sustained interest from traditional finance players. For traders, key levels to watch include Bitcoin’s resistance at $69,000 and support at $65,000, while altcoins like Ethereum face resistance at $3,200 based on order book depth from Binance at 3:00 PM UTC on May 18, 2025. These levels, combined with volume spikes and macroeconomic tailwinds, suggest a favorable 6-8 week window for crypto gains, aligning with the analyst’s optimistic outlook shared on Twitter. However, risk management remains crucial, as sudden shifts in stock market sentiment or regulatory news could impact crypto liquidity and volatility.

FAQ:
What are higher lows in altcoin charts, and why do they matter for trading?
Higher lows refer to a price pattern where each successive dip in an asset’s price is higher than the previous one, indicating growing buyer interest. As of May 18, 2025, altcoins like Solana and Ethereum are forming this pattern, suggesting potential for continued uptrends and providing traders with entry points during pullbacks.

How does M2 money supply impact Bitcoin’s price?
An increase in M2 money supply, as noted on May 18, 2025, often leads to more liquidity in financial markets, encouraging investment in risk assets like Bitcoin. This can drive price appreciation, especially when paired with strong on-chain metrics like reduced exchange outflows, signaling accumulation by long-term holders.