Bitcoin and the wider cryptocurrency market saw a major trend change in the past week. In a relatively short amount of time, they gained 8 percent. After its departure from U.S. stocks, Bitcoin has tried to get on board with the relief rebound.
The volatility of Bitcoin was evident for a week. However, the cryptocurrency has been able to record its first green weekly candle in three months.
BTC traded at $31,256.62 on this date, an increase of 6.0%. According to Coingecko, the market cap for BTC stands at $595.7 billion.
Earlier in the week, Bitcoin was able to reach a peak of $32,000, but the jubilations were short-lived as sellers jumped in and knocked the price back down to where it has been for the past few days.
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Bitcoin’s Strong Resilience
According to technical charts Bitcoin is trading well above its 200 day moving average (DMA). Historically, it has reached its lowest point near 200 DMA or slightly below, which is 25 percent lower than its current price.
Rekt Capital, an acclaimed crypto analyst, shares his thoughts:
“Historically, BTC tends to bottom at, around, or just under the 200-week moving average… $BTC would need to lose a further 25 percent to reach the 200 MA.”
Source: TradingView.com| Source: TradingView.com
The market for Bitcoin ended January in red. It was close to its historic red average with an almost 16 percent loss. Three consecutive months of red in the Bitcoin market ended until February, when there was a little respite.
Both February and March saw bulls on the rise. All of those rallies were erased by April.
As April and May are both considered to be the most profitable months for Bitcoin, so is May. Six green monthly candles were closed by crypto with an average return on investment of 17 percent over the 10 year period.
A Tipping Point for May
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Bloomberg statistics, citing figures from CoinMetrics, indicates that Bitcoin miners sent roughly 200,000 BTC to exchanges in the last month of May.
Meanwhile, before concluding that this is the beginning of the next bull market, investors need to exercise some vigilance and caution as the market could be exhibiting signs of another bear market rally at this point.
Bitcoin may have seen a turning point in May. The bulls finally closed the green candle after nearly 10 weeks. Bitcoin has been supported by this ascending trend line since.
Featured image by CryptoPotato. Chart on TradingView.com