Bitcoin has risen 25% from its recent lows following the outbreak of war in the Middle East and an increase in bond yields. Current corrections do not indicate a shift to new lows, according to MN Trading founder Michaël van de Poppe.
Everyone expects new lows for #Bitcoin.
— Michaël van de Poppe (@CryptoMichNL) May 16, 2026
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
Although the leading cryptocurrency has broken through its 21-day moving average, it continues to show strength, remaining above $76,000, the expert added.
Van de Poppe also pointed to a CME gap at $79,100. He believes the primary reason for the recent drop is a "concentrated correction due to dividend data from Strategy, rather than a change in market momentum."
Meanwhile, Bitcoin remains resilient against the recent rise in Treasury yields to new highs.
10-year U.S. Treasury yield. Source: TradingEconomics.
“Bitcoin ETFs have reached a new historical high in assets under management and number of holders. This alone indicates that many 'smart money' investors are putting funds into the asset. […] New buyers are resilient and have a longer-term perspective,” noted the analyst.
Additionally, a significant drop in the RSI of Bitcoin against gold has been recorded. Historically, this signal has led to the start of a bull market.
Daily chart of XAU/BTC with RSI. Source: TradingView.
Van de Poppe suggested a test of the $70,000 mark if the correction continues, but he expects less likelihood of deeper lows.
Current Situation
At the time of writing, Bitcoin is trading around $78,100. The coin has seen little price change over the past 24 hours.
15-minute chart of BTC/USDT on Binance. Source: TradingView.
Trader DaanCrypto observed that 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.
— Daan Crypto Trades (@DaanCrypto) May 16, 2026
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
In the lower range, the main cluster of orders is located at $71,000 and $65,000. In the upper range, it is at $92,000 and $98,000.
“The longer the price compresses around $80,000, 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,” emphasized DaanCrypto.
On-chain analyst Ali Martinez pointed out Bitcoin's "overheating." The average realized profit for traders has reached 17%—the expert interpreted this situation as a "dangerous" signal.
Bitcoin $BTC is overheating!
— Ali Charts (@alicharts) May 17, 2026
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
This is the first time since October 2025 that the average trader has seen such profit levels, which Martinez noted coincided with Bitcoin testing its 200-day moving average as resistance in March 2022, before the coin reached a local peak and resumed its downward trend.
Additionally, JPMorgan predicted further lag for Ethereum behind Bitcoin.