After a notable rally through most of April, Bitcoin (BTC) again entered a consolidation phase in May with levels near $76,000 serving as a center of gravity. Under the circumstances, Ali Martinez, a top on-chain analyst on X, reflected on the state of the world’s premier cryptocurrency and its likely next moves.
Specifically, the expert noted that the market has been able to slowly build liquidity with BTC trading within a relatively predictable channel through most of the month, creating fertile ground for a substantial move.
Martinez noted that derivatives traders are particularly positioning for a breakout with funding rates reaching 0.4%: a two-month high.
On the flip side, the analyst noted that a bullish move is not guaranteed as institutional investors used the recent Bitcoin performance to rebalance their portfolios, including by selling significant quantities of BTC.
For example, BlackRock sold more than $170 million worth of the cryptocurrency earlier in the month amidst mounting bearish concerns, as Finbold reported on May 18.
Key price levels that will determine if Bitcoin price soars or crashes by June
Under the circumstances, Ali Martinez highlighted that Bitcoin’s recent performance placed it firmly between a strong support and a robust resistance level, identifying the two as $75,733 and $78,258, respectively.
Therefore, the analyst opined that while a major move appears relatively imminent, its direction will be determined by which of the two pivotal prices is reached and breached first.
The expert then added that a rise above the resistance could lead to a rally to $84,569, while a fall below the support would likely generate a correction down to $66,898.
Is Bitcoin price about to break out above the resistance zone?
Considering that Bitcoin is, at press time on May 25, changing hands at $77,284 – 3.74% above the May 23 lows near $74,500 – a test of the resistance level appears like the next step for the cryptocurrency.
Still, it is worth noting that throughout 2026, Bitcoin has remained volatile, with two rallies eventually leading to either a reset or a deeper plunge, despite beginning with upriges of 10% and 18%, respectively.
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