Analyst Highlights Bitcoin’s Strong Fundamentals

Bitcoin has risen by 25% from its lows following the onset of conflict in the Middle East.

Bitcoin has risen by 25% from its lows following the onset of conflict in the Middle East and the increase in bond yields. The current correction does not signify a shift to a new low, according to MN Trading founder Michaël van de Poppe.

Everyone expects new lows for #Bitcoin.

Bitcoin is up 25% from its recent lows after the war in the Middle-East started and a new high in Yields. That’s strength, not weakness.

That’s the actual reason why you should be looking into Bitcoin rather than other assets, as the… pic.twitter.com/x3MUAL72aA

— Michaël van de Poppe (@CryptoMichNL) May 16, 2026

Although the leading cryptocurrency has breached the 21-day moving average, it continues to show strength by holding above $76,000, the expert added.

Van de Poppe also pointed to a gap on the CME at $79,100. In his view, the primary cause is a “concentrated correction due to dividend data Strategy, rather than a change in market momentum.”

Meanwhile, Bitcoin remains resilient to the recent surge in Treasury yields to new highs.

“Bitcoin-ETFs have reached a new all-time high in assets under management and the number of holders. This in itself indicates that many ‘smart money’ investors are putting funds into the asset. […] New buyers are resilient and have a more long-term perspective,” the analyst noted.

Additionally, a significant drop in RSI has been recorded on the Bitcoin-gold pair chart. Historically, this signal has led to the start of a bull market.

Van de Poppe considered the possibility of testing the $70,000 mark if the correction continues, though he expects deeper lows to be less likely.

Current Situation

At the time of writing, Bitcoin is trading around $78,100. Over the past day, the coin’s price has remained largely unchanged.

According to trader DaanCrypto, there are large liquidity clusters above and below Bitcoin’s current price.

$BTC There’s some liquidity clusters right above and below price, primarily the $78K area is an area that’s worth watching.

Besides that, zooming out further we got the ~$92K & ~$98K levels above and the ~$71K & ~$65K levels below.

The longer price compresses around this $80K… pic.twitter.com/eOjP2zHsgP

— Daan Crypto Trades (@DaanCrypto) May 16, 2026

In the lower range, the main cluster of orders is at the $71,000 and $65,000 levels. In the upper range, they are at $92,000 and $98,000.

“The longer the price compresses around the $80,000 area, the more liquidity will continue to accumulate on both sides. At some point, this should lead to a larger and more aggressive move. Of course, it depends on which side gives way,” DaanCrypto emphasized.

On-chain analyst Ali Martinez pointed out Bitcoin’s “overheating.” The average realized profit of traders has reached 17%—the expert interpreted this as a “dangerous” signal.

Bitcoin $BTC is overheating!

The average trader’s realized profit margin has reached 17%. To me, this is a major warning sign: for the first time since October 2025, the average investor is sitting on substantial gains and may be looking to exit.

What stands out to me is the… pic.twitter.com/SCgskCjX9r

— Ali Charts (@alicharts) May 17, 2026

The last time profits reached such levels was when Bitcoin tested its 200-day moving average as resistance in March 2022, Ali added. At that time, the coin reached a local high before resuming a downward trend.

In April, JPMorgan suggested that Ethereum might continue to lag behind Bitcoin.