The crypto market cap holds steady at $2.88T after a bullish structure shift, signaling a potential higher low formation ahead. Despite a recent 0.88% dip, the total crypto market cap stays above key fib levels, showing strength after April’s recovery. Sentiment remains bearish, but price structure and volume suggest the market is building a solid base between $2.7T and $3.0T. The total cryptocurrency market cap is showing signs of renewed strength after a major structural shift on the daily timeframe. The market currently sits at $2.88 trillion, down slightly by 0.88% on the day. However, despite the dip, recent price action has turned bullish. A clean break in structure has emerged following April’s recovery. Traders now eye a higher low as the next key development. A purple support zone just below current levels looks promising. If that fails, deeper Fibonacci levels may provide support. Structural Recovery Follows Steep Correction Since November 2024, the crypto market has moved through a well-defined cycle. The trend started near $2.1 trillion and quickly rallied. December brought explosive growth, pushing the market cap above $3.6 trillion, a 71% rise. Mid-December marked the first peak, followed by a minor consolidation. Source: CRG Momentum returned in January 2025, briefly lifting the market near $3.6 trillion again. However, February reversed the trend. A steep March correction dragged the market down 25%, dropping the cap from $3.1 trillion to $2.3 trillion. April marked a turning point. The market formed a rounded bottom near the $2.3 trillion level. Fibonacci retracement zones appeared, showing possible recovery targets. Price eventually rallied near $3 trillion before pulling back slightly. Bulls Watch for Base Before Breakout Current consolidation between $2.7 trillion and $3.0 trillion suggests a new base may be forming. This aligns with broader bullish sentiment despite recent bearish headlines. CRG from MacroCRG notes that sentiment remains near record lows. However, price structure tells a different story. The market now trades above key Fibonacci levels, with volume evenly split between buyers and sellers. This balance hints at an accumulation phase rather than distribution. The purple zone beneath current prices could form the ideal higher low. Moreover, technical traders view dips as opportunities rather than signals of collapse. With a bullish structure in place, a strong move higher seems increasingly likely. Price may need more time to build momentum, but the foundation appears solid.

  • Crypto Wave 5 is building as the final and most parabolic stage of the bull market draws near, with early signs already showing.

  • Retail participation remains historically low due to rising debt and declining savings, leaving institutional and early investors in control.

  • Market watchers expect a dramatic price surge ahead of retail return, with Bitcoin potentially peaking between $180,000 and $300,000.

The crypto market is approaching what some analysts describe as the most aggressive phase of the bull cycle—Wave 5. With retail participation still low, those in the market now are considered early, ahead of what many expect to be a dramatic surge.

Retail Remains on the Sidelines

In a recent tweet, crypto commentator crypto Seth warned that most retail investors remain sidelined due to economic pressures. “Retail are not interested in the market right now, because they have no capital no savings,” he stated, pointing to record-low U.S. savings rates and personal debt at all-time highs.

https://twitter.com/seth_fin/status/1946319416465268883

Current participation appears limited to a small portion of the market, with Seth noting, “If you are here, then you are among the few.” The general sentiment suggests that the broader public remains unaware or unable to engage. This condition sets the stage for early entrants to benefit before the masses return, typically at the peak of euphoria.

Market Entering Final Bullish Phase

Seth also emphasized that Wave 5 is often the most parabolic and deceptive stage in a bull run. “They will do everything to confuse you,” he wrote, warning that market noise could shake out early participants before the full rally unfolds.

The crypto market has seen similar patterns in past cycles. Early gains attract wider attention only after substantial price increases. This wave, according to Seth, still offers opportunities before retail FOMO begins. He urged users to “lock in” and remain focused, adding, “There is still time to buy, before the train leave the station.”

Institutional Unwinding Follows Retail Euphoria

According to the tweet thread, once retail investors re-enter during the late euphoric stage, market dynamics shift rapidly. “That is where FOMO and Euphoria sets in,” Seth warned, indicating that institutional players may begin offloading as prices reach new highs.

He projected Bitcoin's top between $180K and $300K, followed by a bottom ranging from $40K to $70K. During the decline, panic and institutional deleveraging could mirror the 2022 bear market. “Every bounce will be a dead cat bounce,” he wrote, advising caution.

Seth concluded with a cautionary reminder: “Be careful who you follow, don’t bag hold another cycle.”

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