The price of Bitcoin (BTC) remains anchored in the technical trading range between $ 40,000 and $ 60,000 and the threshold of 50% dominance has been reached. Considered a high risk month, what could happen during the month of May for BTC?
Bitcoin settles in technical trading range
Between the trading sessions of April 14 and April 23, the price of Bitcoin (BTC) lost nearly 27%, a correction sequence that was triggered by the bull trap above $ 60,000. , before entering a technical rebound last Monday.
The market has been covered by this major technical resistance of $ 60,000 since the end of February, as you know if you read me regularly, this is a very important Fibonacci extension level.
I still believe that the chart range trading between $ 40,000 and $ 60,000 can last, especially in May when the equity market could consolidate and put pressure on all risky assets.
“Sell In May And Go Away,” a stock market adage about the seasonality of the equity market that is in the spotlight because there has been no phase of profit taking since the start of the year. I remind you that the positive correlation between the trend of equities and that of cryptocurrencies has been marked since the start of the health crisis.
Until this high-risk month, technical analysis of Bitcoin’s price describes a neutral period between the $ 40,000 / $ 44,000 support zone and the $ 58,000 / $ 60,000 resistance zone.
Here is my latest video with technical analysis of BTC, ETH, BNB and ADA:
Bitcoin dominance stabilizes at 50%
The decline in Bitcoin’s dominance from more than 70% to 50% now is above all an illustration that the cryptocurrency market is not reduced to its leader, with a significant increase in liquidity on altcoins. This is good news that points in the direction of the general and gradual adoption of cryptocurrencies by institutional finance, even if this process is only just beginning.
What will happen now when the 50% threshold is reached? Three options are on the table, breaking and falling towards 40%, a long stabilization over 50% or a strong rebound towards 60%.
In my humble opinion, it is the stabilization on 50% that could take the top, but it is purely subjective anticipation. In any case, the choice that the market will make will be a strong signal for the medium-term trend of all cryptocurrencies.