Bitcoin, Altcoins Turn Bearish As Inflation Worries Pressure Markets

Key points:

Bitcoin has pulled back to the $76,000 level, a crucial near-term support level to watch.Several major altcoins have broken below their near-term support levels, indicating that the bulls have given up.

Bitcoin (BTC) came under pressure on Monday after US President Donald Trump warned Iran that the “clock is ticking” and they better get moving fast. Analyst CryptoRover said in a post on X that a potential US military operation against Iran “is extremely dangerous for $BTC.”

Institutional investors also seem to be turning cautious in the short term. According to SoSoValue data, spot BTC exchange-traded funds recorded $1 billion in weekly net outflows. That was the first net outflow after six successive weeks of inflows totaling $3.4 billion.

Crypto market data daily view. Source: TradingView

While several traders are cautious on BTC’s prospects in the near term, Michael Saylor’s Strategy, the world’s largest public Bitcoin holder, continued to buy BTC. Strategy purchased 24,869 Bitcoin for $2.01 billion between May 11 and 17, boosting its holdings to 843,738 BTC, per Monday’s 8-K filing with the US Securities and Exchange Commission.

Could BTC and the major altcoins bounce off their crucial support levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

S&P 500 Index price prediction

The S&P 500 Index (SPX) rallied to a new all-time high of 7,517 on Thursday, where short-term traders booked profits.

SPX daily chart. Source: Cointelegraph/TradingView

The index may pull back to the 20-day exponential moving average (7,273), a crucial support level to watch. If the price rebounds off the 20-day EMA with strength, it suggests a positive sentiment. That increases the likelihood of an uptrend resuming toward the 8,000 level.

Sellers will have to tug the price below the 20-day EMA to weaken the bullish momentum. If they do that, the index may witness a deeper pullback to the 7,002 level.