What to expect from BTC for the month to come?
Bitcoin had a busy May: a halving on May 11, a break above $ 10,000 and the movement of Bitcoins extracted in 2009, causing a nearly 15% drop in prices.
The bulls, however, rose from a new $ 8,100 test to get close to $ 10,000 again. So far, Bitcoin is trying to exceed $ 9,500 for a new price test with resistance around $ 9,800.
May 2020 / Coin360 Bitcoin price chart
Bitcoin halving was a highly anticipated event, mainly due to the reduction in block rewards and its potential upward effect on price. But the main cryptocurrency saw its value fail after halving. What we saw was a decline in the hash rate, as miners switched to rival Bitcoin Cash and Bitcoin SV networks.
Where does Bitcoin go from here?
Analysts pointed out that a monthly close around August 31, 2019 may be an important indicator of the direction of the cryptocurrency market in the medium term.
The market was aiming for a close above $ 9,000 to keep support levels at $ 8,750 intact. Fundamentally, the cryptocurrency kept the candle above $ 9,400, to mark the first time since August 2019 that Bitcoin’s monthly price index closed above $ 9,360.
The $ 9,360 price rejections at the monthly close in the past have seen cryptocurrency plunge into new lows; the lowest level of the year so far was the $ 3,800 level after the March 12 drop. It is the same level at which a rejection accelerated the bearish trend that saw Bitcoin drop to $ 3,000 lows, with the market down for a year dropping prices in 2018.
In May, Bitcoin bulls jumped between a low of $ 8,100 and a high of $ 9,966, with a new bearish test playing a support blow. After exceeding $ 9k, the cryptocurrency rose to a monthly high before a new support test turns levels above $ 9k and $ 9.5k into two major resistance zones.
Bitcoin price chart showing immediate support and resistance levels / Source: Tradingview
An upward trend is expected to see Bitcoin overcome $ 9,750 and $ 9,850 hurdles to reach the coveted $ 10,000 mark. Bulls, however, need to eliminate resistance at $ 9,600, with rejections at that level likely relying on immediate support at $ 9,300 first. Current price levels are critical as they keep last weekend’s $ 9,745 high in sight.
Bitcoin is currently being traded within that range: so a leak could rise further, but a pullback means that lower price levels are still at stake.
According to this Bitcoin price chart, a big rise could materialize above $ 10k, sending BTC / USD to $ 16k highs in 2020. However, if there is a sustained drop in the coming weeks, prices could reaching levels around $ 6k.
Traders are looking at $ 10,555 as a critical level that could catalyze an upward trend.
Source: Coin Journal