Bitcoin Impulse Move Toward New Highs Sets a Fire Under HYPE, ETH, XMR and AAVE

Bitcoin (BTC) has reignited bullish sentiment across the cryptocurrency market, surging past $105,980 and sparking renewed optimism among traders and investors. This impressive rally has many predicting that Bitcoin is poised to test new all-time highs in the near term, with several analysts revising their year-end price targets upwards to as much as $200,000. The momentum behind Bitcoin’s surge is also fueling excitement in select altcoins, including Hyperliquid (HYPE), Ethereum (ETH), Monero (XMR), and Aave (AAVE), which are showing promising technical setups and could lead the next wave of gains.

Bitcoin Price Outlook: Momentum Building Toward New Highs

For several days, Bitcoin traded within a relatively narrow range, consolidating after its previous gains. However, the breakout above $105,500 on May 18 has increased the likelihood of a sustained upside move.

Popular trader Alan, posting on X (formerly Twitter), suggested that Bitcoin could reach $116,000 as early as next week, highlighting the strength of the current impulse.

Meanwhile, Matt Hougan, Chief Investment Officer at Bitwise, shared with Cointelegraph his bullish view that a supply shock driven by institutional demand could propel Bitcoin to $200,000 by the end of 2025. Hougan anticipates that sellers will become exhausted around the $100,000 level, paving the way for further price appreciation.

Technical Analysis of Bitcoin

• Resistance Levels: Bitcoin faces immediate overhead resistance at $105,820. A decisive break and close above this level could open the path toward $109,588.

• Potential Targets: If bulls maintain control, Bitcoin could surge to $130,000, fueled by strong buying momentum.

• Support Levels: Conversely, a sharp drop below $100,000 would indicate bearish dominance, potentially pulling Bitcoin down to the 50-day simple moving average (SMA) near $91,447.

• Chart Patterns: The BTC/USDT pair recently broke out of a symmetrical triangle on the 4-hour chart, signaling buyer control. However, sellers may attempt to pull the price back into the triangle, risking trapping aggressive bulls and triggering a correction to $100,000 or lower.

Ethereum (ETH): Poised for a Breakout Toward $3,000

Ethereum has experienced some volatility, dipping below the breakout level of $2,550 but showing resilience as bears struggle to sustain lower prices.

• Moving Averages: The 20-day exponential moving average (EMA) at $2,275 is trending upward, supporting the bullish case.

• Resistance and Targets: A close above $2,550 could set the stage for a push toward $2,739 and potentially $3,000, reigniting the uptrend.

• Risks: A break below $2,400 would be a warning sign, potentially triggering a correction toward the 20-day EMA and lower support levels at $2,270 and $2,111.

Hyperliquid (HYPE): Yield-Generating Altcoin Gaining Traction

Hyperliquid (HYPE) is currently facing resistance at $28.50 but shows strong bullish indicators.

• Technical Indicators: The upsloping moving averages and RSI in the overbought zone suggest buyers are in control.

• Price Targets: A break above $28.50 could propel HYPE toward $35.73, with intermediate resistance at $31.33.

• Support Levels: If rejected at resistance, HYPE may retrace to the 20-day EMA near $23.52 or the 50-SMA on the 4-hour chart, which have historically attracted buying interest.

• Risk Factors: A break below the 50-SMA could indicate profit-taking and lead to a decline toward $24 and $23 support levels.

Monero (XMR): Privacy Coin Showing Strong Buying Interest

Monero has rallied sharply from $262 on May 4 to $353 on May 12, signaling aggressive accumulation.

• Support and Resistance: The immediate support lies at $331, with the 20-day EMA at $308 providing a critical level. Resistance is strong at $353.

• Price Targets: A breakout above $353 could send XMR toward $391 and $422.

• Downside Risks: A failure to hold $331 could lead to a test of the 20-day EMA and possibly a deeper correction to $317 and $300.

Aave (AAVE): Lending Protocol Eyes $300

Aave is currently battling resistance at $240 but has shown strength by not falling below the 20-day EMA at $206.

• Technical Setup: The 20-day EMA is beginning to turn upward, and the RSI is moving into bullish territory.

• Potential Upside: A close above $240 could initiate a rally toward $280 and eventually $300.

• Support Levels: Bears will need to push AAVE below the 20-day EMA and $196 support to regain control.

• Consolidation Zone: The price has been consolidating between $217 and $240, with a breakout above $240 likely to ignite further gains.

Is an Altcoin Season Imminent?

With Bitcoin’s strength laying the foundation, many analysts are turning their attention to altcoins. Crypto analyst Javon Marks recently noted on X that altcoins (excluding Ethereum) could be poised for “one of their most powerful runs since 2017.”

The combination of Bitcoin’s rally, institutional inflows, and improving market sentiment suggests that altcoins with strong fundamentals and technical setups could outperform in the coming weeks.

Conclusion: Market Momentum Builds, But Caution Remains

Bitcoin’s breakout above $105,500 has reignited bullish momentum, with many eyeing new all-time highs. Ethereum, Monero, Aave, and Hyperliquid are showing promising technical signals that could lead to substantial gains.

However, traders should remain cautious of potential pullbacks and resistance levels. Monitoring key support zones and volume confirmation will be critical to navigating the next phase of this market cycle.