Bitcoin (BTC) Price Analysis 05/06

Last month did not go as anticipated for the bulls, as Bitcoin underperformed. There were various positive forecasts about how the apex coin would perform, but all of them failed since price advancement was hampered by strong market corrections.

One such forecast based on BTC’s historical performance said that April was the most lucrative month of the year. According to this conclusion, there was a lot of talk about the largest cryptocurrency flipping for $50,000.

The apex coin started at $45,522 and reached a high of $47,458. It concluded at $37,639, a decrease of more than 17%. What triggered the shift in the rising trend noticed at the start of April?

During the preceding 30-day period, we witnessed a sufficient number of positive fundamentals in the market. Another country has made Bitcoin legal tender. A BTC-backed loan was also provided by large financial organizations such as Goldman Sachs. These strong fundamentals, however, were unable to prevent the bears from undermining BTC.

The Fear and Greed Index will be examined next. We observe that the Index was highly optimistic at the start of April and improved as the days went into weeks. However, after the first major loss, it appeared that the bulls had lost their will to rally the market.

The statistic under evaluation indicated considerable dread in the latter two weeks of the month and was below 30. Bitcoin flipped the $36k barrier and found support at $35,500 a few hours ago, at the time of writing. Will there be other downtrends?

According to the most recent price decline, bitcoin is already down over 5% in May. Following the failure of last month’s speculation, we may deduce that market activity over the following 25 days will be more dismal.

However, in order to understand asset behavior in May, we will rely on historical records. According to the data below, the fifth month of the year is typically bullish, with the top coin gaining more than 19%.

The Moving Average Convergence Divergence (MACD) has exhibited hints of recovery since March, but has since failed due to repeated downtrends. BTC is still trading above 0 on the 1-month chart, indicating that it is bullish.

Nonetheless, there is cause for caution, since the Relative Strength Index is at 50 and continues to fall. This might be a terrible omen for the apex coin since it indicates that there will be more seller congestion.

The weekly chart depicts a more threatening position, since the largest cryptocurrency by market size witnessed a bearish divergence last week. According to MACD, bitcoin will continue to fall because both EMAs are below zero.

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