After a significant bearish direction, Bitcoin is finally recovering, starting this month of May 2021 with great force, which makes the forecast of various analysts be made from positivism.
At the time of this writing, BTC is trading at $ 57,461.80, accumulating a gain of 2.32% in the last 24 hours.
Yesterday a large bullish signal was thrown by the price, and that was the break of the immediate resistance, located at $ 56,150, confirming that the bulls regained control of the short-term trend.
Now buyers have the ground clear until the resistance left by the all-time high, located at $ 64,575. The question is, will Bitcoin manage to break through this barrier ?, or on the contrary, will we see a dormant price for a longer time ?, the answer in the paragraphs below.
Bitcoin price daily chart. Source: TradingView.
The correction was not entirely healthy
After 6 months of continuous rise, barely letting the bears breathe, finally during April we saw BTC make a pullback.
A monthly bearish candle just closed, making a more than necessary pullback following an incredible parabolic rally.
In this downward process, the price reached a minimum of $ 46,930, thus reaching 23.60% of the Fibonacci.
When a retracement reaches this Fibonacci level and stops there, it tells us of an unhealthy correction, but also of incredible momentum.
Knowing that we are in the middle of the bullish cycle, and the force that the price brings is beastly, it is likely that a minimal fall like the one we saw is enough before continuing to rise.
Sure we can see a deeper and healthier pullback, but at the moment it doesn’t seem like the most likely scenario.
Monthly chart of the price of Bitcoin. Source: TradingView.
Bitcoin Forecast, May 2021
When analyzing the weekly chart we note how the week that is about to end is closing with a great upward engulfing force, which may be signaling the resumption of the medium-term trend.
From this time frame we do see a healthy correction towards 50% Fibonacci. After this decline, the price has kept trying to develop momentum, so far without success, as we should see it reach at least $ 66,461 (-27% of Fibo).
Even the behavior of Bitcoin shows intentions to reach that bullish target in this month of May 2021. Even if the strength is enough, we could quickly see an extension in search of $ 76,441.
For us to think about sales, we must first see the break of $ 45,135, which would open the way to a drop to $ 38,150. This bearish scenario is unlikely right now; however, it is good to have it on the table.
Bitcoin Forecast, May 2021. Source: TradingView.
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