Bitcoin, the first ever cryptocurrency, is set to close its 3rd consecutive monthly candle in green after a record-setting six candles closed in red which is taking BTC price to its current bear market low of $3,150.
Owing to how far Bitcoin has climbed since those historical lows, crypto-analysts believe that May is likely to close in the red since buying momentum has begun to show exhaustion, and an enormous retrace is overdue. Where a red May is possible, past performance in BTC price amid May suggests that it’s more likely to close green.
Cryptocurrency Analysts Anticipate May to Close Red on BTC Price Charts
Following months of renewed bullish performance in the cryptocurrency market, Bitcoin has rallied over $2,000 above its local bearish market low, while setting the first higher high since its all-time high was recorded back in December 2017.
This Bitcoin rally has spanned over 3 months, first starting gradually, then picking up some momentum following the break of the overhead resistance at $4,200. The latest move took BTC price even higher, which is peaking at $5,650 before pulling back to the current levels around $5,450.
Following up from "trade the trend" – People ask "how you can tell if it's a trend?"
It does take time to form, so don't expect to get in at the very bottom if you're trend trader – Watch the price action – higher-lows here
— Rager 📈 (@Rager) April 24, 2019
Owing to 3 months in a row closing green and the Bitcoin price nearly doubling since last year’s low, the analysts are now anticipating cryptocurrency to retrace, which is leading to a red May candle close. In spite of leaning toward a bearish May outcome, analyst Josh Rager does not rule out the chance of Bitcoin attempting at $6,400 before closing the month red.
Selling in May Hasn’t Been Effective
Upon reviewing BTC price charts over the last 9 years it’s been traded, the digital currency has only had three monthly candle closes in May which were red.
The first of what happened in May of 2013. The next after that was the lowest bear market of 2015, right before Bitcoin rallied into a new bull trend. Another red May after that was the last May when Bitcoin got rejected at $10,000 back down to re-test support at $6,000 in the following month.
At press time, Bitcoin is ready to test that same support, however, turned resistance at $6,000 in the days ahead – resistance that is specific to be a struggle for bulls who have only recently regained their confidence in the asset class.
Where Bitcoin goes amid the month of May could set the tone for the next few years ahead for the entire cryptocurrency market, and we will find out if the adage ‘sell in May and go away’ keeps any merit in the cryptosphere.