Analysts debate whether Bitcoin is in a ‘sell in May’ bear market setup

Some analysts argue that a comparatively broadened, institutionalized buyer base for crypto today may prevent a repeat of the drawdowns seen in May 2018 and May 2022.

Cointelegraph by Martin Young · 18 May 2026 · 4 min read

Wire content from Cointelegraph

Written by Martin Young⁠, Staff Writer. Reviewed by Felix Ng⁠, Staff Editor. Written by Martin Young⁠, Staff Writer. Reviewed by Felix Ng⁠, Staff Editor. Analysts debate whether Bitcoin is in a ‘sell in May’ bear market setupLatest NewsPublishedMay 18, 2026<!–>

Some analysts argue that a comparatively broadened, institutionalized buyer base for crypto today may prevent a repeat of the drawdowns seen in May 2018 and May 2022.

Crypto analysts are divided over whether markets will see a major Bitcoin sell-off in May, a pattern that has emerged in the last two bear markets during US mid-term election years.

In May 2018, Bitcoin crashed from nearly $10,000 to about $7,000 by the end of the month. It happened again in May 2022, when Bitcoin fell nearly 30% from about $40,000 to $28,500 before falling further in June to $20,000.

With 2026 also a bear market year coinciding with a US mid-term election, there are concerns it could happen again.

“The most brutal pattern in Bitcoin history. Nobody wants to hear this. But the pattern is perfect. Mid-term election years. Bitcoin dumps. Every time,” crypto analyst Merlijn Enkelaar said on Sunday.

Enkelaar said a similar move could see Bitcoin prices collapse to $33,000 despite the advancement of key legislation, the CLARITY Act, positive crypto sentiment from the Trump administration and potential trade deals between the US and China.

Joao Wedson, founder and CEO of Alphractal, also said Sunday that there would be a higher probability of a new capitulation phase if Bitcoin remains under $78,000, with bears “showing signs of strength.”

Bitcoin was trading at about $76,900 at the time of writing, down 5.6% over the past seven days.

The calendar didn’t cause previous crashes, analyst argues

Jeff Ko, chief analyst at the CoinEx exchange, told Cointelegraph on Monday that midterm election years have coincided with major Bitcoin bear markets, “so some traders may be tempted to frame 2026 as another ‘sell in May’ setup.”

However, behind that historical seasonality were more concrete macro drivers, such as the Mt. Gox aftermath, China’s ICO crackdown, Fed tightening and the Terra/FTX collapses, he said.

“The calendar didn’t cause those drawdowns — specific shocks did.”

Ko said he doesn’t expect BTC to repeat the 70% to 80% drawdowns seen in past cycles because the market structure has fundamentally changed.

“Spot ETFs, corporate treasury adoption, and the CLARITY Act moving through Congress have meaningfully broadened and institutionalized the buyer base compared with past cycles,” he added.

“In my view, a move toward the mid-$60k or high-$50k range could be defensible under a macro shock or a significant ETF outflow cascade. But a move back to $33k would likely require something genuinely systemic to break, rather than simply a repeat of historical seasonality.”

Key support level must hold

MN Fund founder Michaël van de Poppe was also bullish, saying on X Sunday that the current Bitcoin price action “doesn’t shout for new lows” but is “consolidating after a run of 40%.”

However, an important support level that is currently preventing a larger decline is the $76,000 area, he cautioned.

“If that level is lost, I would assume that the markets will see a further downward fall towards lower boundaries,” he said.

Trader eyes key support level that must hold. Source: Michaël van de Poppe

Magazine: eToro founder timed Bitcoin top perfectly due to belief in 4 year cycles

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.