The cryptocurrency market, including Bitcoin and altcoins, is currently experiencing short-term bear pressure. This downward trend may signal the end of the post-halving pullback and the beginning of a long consolidation period, potentially leading to a summer slump.

While some niche sectors like meme coins might buck the trend, the overall outlook for altcoins appears bleak.Stablecoin user activity has been declining since mid-April, indicating a decrease in trading and interaction. This reluctance to engage in bullish activities is a worrying sign for investors.

On the other hand, stablecoin exchange reserves have been consolidating within a range this year but recently experienced a sharp increase on May 13, which could be a positive sign for bulls if the trend continues.

The Tether dominance chart, which tracks the percentage of USDT in the total crypto market value, is currently above the 4.9% support level. If it rises towards the 5.79% resistance, it may indicate that investors are preferring to stay on the sidelines, potentially leading to a continued downturn. However, if the trend reverses and falls further, it could be seen as a signal for bulls to extend their positions.