Bitcoin Price Analysis for May 21st: Market Recovers
After the bloody May 19th, the price of the first cryptocurrency was gradually restored. Bull traders did their best to return BTC above $40,000, and they managed to do so
The daily maximum, according to CoinMarketCap, was $42,406. However, volatility is noticeable on the chart. At the time of writing, Bitcoin is trading at $40,033. Its capitalisation is 733.8 billion.
The task of investors on May 20th was to push the cryptocurrency above $40,000. This is a psychological level that will become a support for cryptocurrency and a base for further growth.
This was achieved, but so far the price has not been fixed definitively. The Bulls are trying to break through the resistance level by $42,000. If they manage to gain a foothold above this line, strong growth is possible.
Also in the cryptosphere there is still panic. Many analysts predict that Bitcoin has not yet found its bottom. And maybe a new drop below $30,000.
In favor of a possible downtrend speaks such a technical index as an indicator of fear and greed. On a scale from zero to 100, where zero is absolute fear and 100 is extreme greed, the mark of 11 is now visible. That is, private investors are very concerned, namely, they have been the initiators of panic sales in recent days.
As the Chainalysis report shows, institutional investors held their Bitcoins tight and even bought at a low price. Among them are Tesla, MicroStrategy and even Justin Sun.
What happens next with Bitcoin?
Despite the negative forecasts, most think that the bull market is not over yet. The technical picture on the cryptocurrency chart is such that, most likely, the fall of Bitcoin will soon turn into growth. Negative news has already had its impact, what is done, is done.
According to analysts Raison Asset Management, it is not worth selling, but it is better to buy Bitcoin in small portions, weighing risks. In the future, the coin, according to the analytical agency, will rush to 100,000 dollars.
The experts of the financial company Newcent have a similar opinion. If there are no global shocks, the market will go above 42-43 thousand dollars, and then Bitcoin will grow again. Let's see whose opinion is confirmed.
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