BTC & ETH Reach New Highs Amid Analyst Caution

Bitcoin has reclaimed the psychological milestone of $100,000, reflecting renewed bullish sentiment but also prompting caution among analysts.

On May 8, the leading cryptocurrency reached as high as $104,000, surpassing the key six-figure level for the first time since February 2025. While the move above $100,000 is significant, some market observers remain wary about the sustainability of the uptrend. A Rekt Capital analyst emphasized two key points of the current situation:

1. The lunge to the downside is complete.
2. Bitcoin has returned to the upper boundary of its previous reaccumulation range at around $104,500.

1-week chart of BTC/USD. Source: Rekt Capital

Keith Alan, co-founder of trading resource Material Indicators, noted that recent rallies have been accompanied by declining volume and repeated wicks below the yearly open, suggesting caution is warranted. Alan commented:

“For me, a pump above $95k would invalidate the new signal, but I’d probably consider such a move to be a short squeeze unless we have a catalyst with some substance behind it.”

Will there be a support retest?

Alan also remarked that a retest of support around the $98,000 level could be more constructive for confirming a reversal than simply breaking above $100,000. He added:

“If successful, I would like to see a move above $100,000 and some consolidation with multiple support retests to confirm a reversal above $100,000 before the next macro move to new price highs.” 

However, he tempered expectations, noting, “Unfortunately, the market gives exactly zero ‘care’ about what I would like to see, so I will continue to watch the charts and trade what I see in front of me”.

Network Activity and FOMO

Amid the renewed rally, there has been a notable increase in Bitcoin network activity. Analytics firm Santiment reported a surge in new wallet creation, signaling heightened retail interest and potential FOMO. 

In one day, 344,620 new bitcoin wallets were created – one of the highest numbers of the year. Source: Santiment

The asset with the largest market capitalization in the crypto sector reached a high of approximately $103,800, silencing some bearish voices for now.

Ethereum’s Price Action and Market Context

Ethereum also saw upward momentum, though not as dramatically as described in the original article. While Ethereum did rise in early May 2025, the reported 35% surge and a price of $2,451 are inaccurate; actual prices were higher, and the percentage gain was lower.

The rally in Ethereum was influenced by a combination of factors, including broader crypto market strength and technical updates, but not directly by the U.S.-U.K. trade deal or the acquisition of Deribit by Coinbase – events more closely linked to Bitcoin’s performance.

Movement of funds in the Ethereum ETF US. Source: Farside Investors

Despite Ethereum’s price gains, spot Ethereum ETFs continued to see outflows, with $16.1 million withdrawn on May 8, marking the third consecutive day of outflows. The price rise caught many traders off guard, leading to the liquidation of over $390 million in short positions on Ethereum in the past 24 hours.

Crypto trader Alex Krüger noted that the sharp rise in Ethereum’s price was primarily due to the opening of new long positions, in contrast to Bitcoin’s rally, which he attributed to the closing of shorts. Bob Loukas added, “ETH holders think this could finally be the tipping point.”

While 2025 has seen significant volatility, with Bitcoin rebounding from April lows near $74,000 to current levels above $100,000, analysts remain divided on whether the uptrend will continue without further consolidation or a clear catalyst.