Monthly Bitcoin Analysis (29.05.2019)

By Bastien Muster

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After this parabolic surge and gains on Bitcoin of more than 100% since the beginning of the year, we can expect a correction at some point. The level to watch is $9’000, the current resistance. If the price can easily cross this level, the bullish momentum will probably continue to rise to $10’000. At the moment, positive news such as the validation of the anticipated bitcoin ETFs and the growing interest of retail investors (the FOMO (Fear Of Missing Out) effect) could skyrocket the price.

Otherwise, if the momentum weakens, we can expect profits to be taken and a correction to bring the price below $8'000. A period of stabilisation will come at a time when it will be very likely to see the altcoins recover compared to bitcoin. The awaited “altcoin seasons”.

After a period of consolidation at the end of April, the price of bitcoin literally exploded. May was a parabolic month.

Most technical analysts predicted a high resistance between $6’000 and $6’500 that could be unbreakable with a high probability that this resistance would cause a significant correction.

However, against all expectations, these levels were broken extremely quickly with a buying pressure similar to that observed at the end of 2017.

Despite the binance hack (7000 BTC stolen) and the postponement of the SEC’s decision on bitcoin ETFs, nothing stopped the bullish momentum. After a healthy two-week consolidation around $8’000, the price exploded again to test the $9’000 level.

In terms of technical indicators, the RSI has never been so high (weekly) since the end of 2017, the price is far from its average, and the momentum is extremely bullish. At the same time, google research related to Bitcoin is increasing sharply.

With this strong bullish momentum driven by a renewed positive sentiment, the entire market gained more than $100 billion in May (+60%). The bull market is back.

What could we expect for the future?

After this parabolic surge and gains on Bitcoin of more than 100% since the beginning of the year, we can expect a correction at some point. The level to watch is $9’000, the current resistance. If the price can easily cross this level, the bullish momentum will probably continue to rise to $10’000. At the moment, positive news such as the validation of the anticipated bitcoin ETFs and the growing interest of retailed investors (the FOMO (Fear Of Missing Out) effect) could skyrocket the price.

Otherwise, if the momentum weakens, we can expect profits to be taken and a correction to bring the price below $8'000. A period of stabilisation will come at a time when it will be very likely to see the altcoins recover compared to bitcoin. The awaited “altcoin seasons”.