Sell in May and Go Away? A Look At Historic Bitcoin Price Performance in May

The first ever cryptocurrency, Bitcoin, is set to close its third consecutive monthly candle as green, after a record-setting six candles closed in red, taking Bitcoin price to its current bear market low of $3,150.

Because of how far Bitcoin has climbed since those local lows, crypto analysts believe that May is likely to close in the red as buying momentum has begun to show exhaustion, and a larger retrace is overdue. While a red May is certainly possible, past performance in Bitcoin price during the month of May suggests that it is more likely to close green. Does the old stock market adage of “sell in May and go away” make sense for the leading cryptocurrency by market cap?

Crypto Analysts Expect May to Close Red on Bitcoin Price Charts

Following months of renewed bullish confidence in the crypto market, Bitcoin has rallied over $2,000 above its local bear market low, setting the first higher high since its all-time high was set back in December 2017.

Related Reading | Crypto Analyst: Higher High In Bitcoin Price Confirms Bear Market Bottom Is In

The rally has spanned over three months, first starting slowly, then picking up momentum following the break of overhead resistance at $4,200. A recent move took Bitcoin price even higher, peaking at $5,650 before pulling back to current levels around $5,450.

Due to three months in a row closing green and the price of Bitcoin nearly doubling since its 2018 low, analysts are now expecting the leading crypto to retrace, leading to a red May candle close. Despite leaning toward a bearish May outcome, analyst Josh Rager doesn’t rule out the chance of Bitcoin making an attempt at $6,400 before closing the month red.

Selling in May Hasn’t Been Effective for Crypto Investors In the Past

Upon reviewing Bitcoin price charts over the last 9 years its been traded, the cryptocurrency  has only had three monthly candle closes in May that were red.

The first of which occurred in May of 2013. The next after that was at the bottom of the 2015 bear market, right before Bitcoin rallied into a new bull trend. The next red May after that, was last May, when Bitcoin was rejected at $10,000 back down to re-test support at $6,000 in the following month.

Related Reading | Bullish Bitcoin Price Formation Hints At Short Term Move Above $6K

Now, Bitcoin is ready to test that same support but turned resistance at $6,000 in the days ahead – resistance that is certain to be a struggle for bulls who have only recently regained their confidence in the asset class.

Where Bitcoin goes during the month of May could set the tone for the next couple of years ahead for the entire crypto market, and we’ll find out if the adage “sell in May and go away” holds any merit in the crypto space.

Featured Image from Shutterstock

Despite Dropping, Ethereum (ETH) is Bullish and May Even Be a Store of Value

  • Ethereum (ETH) prices drop 5.5 percent from $170
  • The development of Ethereum 2.0 will reinforce ETH

Despite competition and the threats of Binance Chain, Ethereum will leverage on their first mover advantage as a time-tested platform and recover. Besides, the promise of Ethereum 2.0 and implementation of EIP 1234 means scarcity and ETH holders would be the primary beneficiaries.

Ethereum Price Analysis

Fundamentals

That Ethereum is enjoying a first-mover advantage in a field that is already crowding with competitors offering faster and cheaper alternatives is correct. Entrants like Tron, EOS and now Binance Chain may prove too “speedy or scalable” for a platform that is already grappling with scalability and dApps shifting camps thanks to VMs that are compatible with open source Ethereum.

Although plans are there to increase the throughput of the network via Shasper for example, similar platforms as Tron and EOS are operating with irresistible offers as well as a scalable network though with a tinge of centralization thanks to consensus algorithm deployed.

Even so, there is hope, and as Ethereum seek to migrate from a proof-of-work to a proof-of-stake system, the activation of Constantinople was at the back of consensus that mining rewards would fall from three to two in readiness of a freeze that will not only see rewards decrease but inflation drop to 0.5 percent during Serenity.

In the short-term, this may disadvantage or even dis-incentivize miners, but in the long-term, odds are, Ethereum (ETH) prices could soar thanks to scarcity—both in rewards and inflation, better placing the second most valuable coin as a perfect store of value with smart contracting capabilities, better than Bitcoin.

Candlestick Arrangements

Ethereum ETH

Changing hands at $165 with a market cap of $17,372 million, Ethereum (ETH) is under pressure and cracking. It is down 5.5 percent in the last 24 hours. Even so, it is not as positive despite the coin trading within a bullish breakout pattern.

First, it is clear that sellers of Apr-11 are in control. That is so because, from an effort versus result point of view, buyers didn’t fully reverse losses of Apr-11. Besides, although trending above $170 in a bullish breakout pattern, accompanying volumes were low and prices didn’t rally above $190 confirming buyers of Apr-2 setting in motion the next wave of higher high propelling prices towards $250 as laid out in our last ETH/USD trade plan.

Even so, any drop below Apr-15 lows at $155 could see ETH collapse back to $135 or Apr-2 lows in a retest before trend resumption.

Technical Indicators

Average volumes stand at 181k in a bullish breakout pattern. Ideally, ETH buyers would be back in control if prices edge past $190 with high volumes exceeding 575k of Apr-2 or even Feb-24 at 880k in a bullish breakout pattern that will trigger participation as prices rally to $250.

Chart courtesy of Trading View

Bitcoin (BTC) Cooling Down After Impressive Gains, Satoshi Quest

  • Bitcoin prices stretched, down 2.1 percent
  • John McAfee, a BTC supporter, in direct contact with Satoshi

Satoshi has spoken to John McAfee, and he is unhappy that the talented technologist is after uncovering him, ten years after mining the first Bitcoins. With this revelation, Bitcoin (BTC) prices are stable but down 2.1 percent in the last day.

Bitcoin Price Analysis

Fundamentals

The discussion around the true identity of Satoshi Nakamoto, the anonymous founder of the multi-billion platform in Bitcoin, is always an interesting debate. While it is good that the network is as decentralized as it is with no figureheads—unlike Tron or Ethereum for example, the quest for cracking open the seal and pinpointing the brains behind Bitcoin is on and promise to be another thriller for curious followers. After Craig Wright’s decision to slap critics with lawsuits and consequent de-listing from Binance and several other exchanges, there is a new lead from a Bitcoin supporter and perma-bull, John McAfee.

John McAfee, the often outspoken and eccentric leader behind a successful McAfee Antivirus now claims to know, with confidence, who Satoshi Nakamoto is. Although facing extradition from the Bahamas and concurrently planning to run for the presidency, John told Bloomberg that he would “out “Satoshi in weeks before retracting his comments because he had “talked with Satoshi” and the elusive founder was apparently “unhappy with his efforts”:

“I’ve spoken with him, and he is not a happy camper about my attempt to out him.”

Adding that:

“Releasing the identity of Satoshi at this time could influence the trial and risk my extradition. I cannot risk that. I’ll wait.”

Candlestick Arrangements

Bitcoin

Exchanging hands at above $5,400, Bitcoin (BTC) is firm and up 4.7 percent in the last week. Even so, bears are back in a correction, heaping pressure on the coin which as a result is down 2.1 percent at the time of press.

Nonetheless, prices are trending above critical resistance levels. Even if traders need prices to firm-up above $5,400 before the next wave of higher highs thrust prices to $5,800, $6,000 effectively reversing losses of Q4 2018, it is imperative that participants keen prices above $5,000.

By doing so, buyers of early Apr will be in control. Besides, with BTC trading within a bullish breakout pattern evident in the weekly charge, the path of least resistance will be up as every dip is another buying opportunity.

Technical Indicators

There is a slight over-extension in the daily chart since yesterday’s close is above the upper BB. Regardless, buyers are in control, and from an effort versus result point of view, confirmation of Apr-2 buyers must be with high volumes closing above Apr-23 highs with high volumes exceeding 19k of Apr-11.

Chart courtesy of Trading View

Ripple (XRP) Down 7.3 Percent To Nov-2017 Levels, Rally in the Making?

  • Ripple (XRP) slide 7.3 percent, retesting primary support
  • Start-up innovating and funding firms building XRP use cases

Prices and accompanying fundamentals are not in sync as Ripple (XRP) accumulate within a 4 cents range with support at 30 cents. All the same, we are bullish, and any trigger lifting prices above 34 cents or forcing liquidation below Jan 30 lows must be with high transaction volumes.

Ripple Price Analysis

Fundamentals

There is a clear divergence. From a fundamental point of view, Ripple (XRP) should be rallying and even back to $1. However, that is not the case and to put it quite literally, XRP, the third most valuable coin with a market cap of $12,616 million, is struggling.

Worse, it may drop below a critical support level, and that will precipitate losses as the coin drop to valuation last seen in Q4 2017. That’s some few days before the supper rally when XRP peaked at $3.3. Even if it may seem to be an uphill task, we cannot discount anything, especially now that fundamentals continue to flow as prices accumulate within a tight trade range.

While IBM, with a firm foothold in banking and collaborating with a competitor in Jed McCaleb’s Stellar and launching World Wire with six banks willing to issue their coins on the platform, Ripple is steps ahead.

First, they have a presence in SE Asia and the Middle East and are actively investing in projects, diversifying their portfolio and building infrastructure that makes us of XRP use cases. With Forte, they plan to dominate the multi-billion gaming scene and with a vibrant community pushing for integration, it’s only a matter of time before prices respond—hopefully in the right direction.

Candlestick Arrangements

Ripple XRP

At press time, Ripple (XRP) is deep in accumulation and trading above Jan 2019 lows within a four-month, 4 cents range capped by 30 cents on the lower side and 34 cents on the upper side.

To reiterate our stand, we are net bullish on Ripple (XRP) with guidance from Sep 2018 bull bar. Therefore, as long as Jan 30 lows at 30 cents hold and bears find floors at this level, then there is always a slim chance that bulls will flow back and close above 34 cents in a trend resumption phase.

As it is, we shall take a neutral stand until after our trade conditions are right, that is, until XRP prices edge past 34 cents or drop below 29 cents invalidating our overall stance.

Technical Indicators

Despite our positive outlook, today’s meltdown did reverse gains of Apr-2 albeit with low transaction volumes. Average volumes stand at 16 million meaning for trend confirmation or bull-trend cancellation, confirming bar must be wide-ranging, closing above 34 cents or below 29 cents with high volumes exceeding mean of 16 million and 79 million of Apr-2.

Chart courtesy of Trading View

Fintech Startups are Overtaking Banks, Will Crypto Emerge as the Winner in Long-Term?

The business case for corporate investment in bitcoin’s underlying technology, the blockchain, is inevitable, according to a report.

Titled ‘Key Drivers, Emerging Trends, and Development in Corporate Banking,’ the study discussed how new competitors in the financial technology sector are overtaking corporate banks. It posed two key trends, Artificial Intelligence and Blockchain, the combination of which could serve corporates speedy financial services, including optimized utilization of supply chain, know your customer, identity management, and trading.

“The latest thinking in this area seeks to combine emerging technologies of AI and blockchain into a single proposition – the enormous, untapped source of data within blockchains being interrogated to unearth/create value, by AI,” the report read. “Big data providing the ‘quantity’ and blockchain – with its data capture, validation and assurance capabilities – the ‘quality’.”

Clients are the New Competition

Authors Finextra Research and Oracle Financial Services wrote that deployment of AI would see the launch of “cash management solutions” and the attainment of “governance and regulatory needs.” Such an infrastructural overhaul would require corporates to manage a massive amount of computational data while maintaining its integrity. Blockchain will be able to address such a challenge.

The authors added that it was likely for corporates to invest in a blockchain solution than seeking support from their banks. The statement followed a World Economic Forum research which predicted that blockchain platforms would store 10 percent of the world’s GDP in the next decade. The report added that central banks’ and monetary policies’ sluggishness was a roadblock before blockchain’s growth. But that was not deterring corporates from testing blockchain in their private sandbox environments.

That said, a bank had more hurdles than a corporate chain when it came to utilizing the digital ledger technology. That bought one more time against the other. For instance, tech companies such as IBM and Alibaba had filed more blockchain patents than Bank of America and MasterCard. Nevertheless, the BoA held the most at 82.

“Blockchain can facilitate the transfer of value (currency) of anything digital and could be deployed within a cash-pool to manage cash positions and liquidity requirements without the use of traditional bank infrastructure,” wrote Fintextra. “The corporate would have to invest in a blockchain solution and be able to manage it within their infrastructure, or banks might offer it as a dedicated service.”

Blockchain Not Ready, Anyway

The Finextra-Oracle report admitted that the business case for corporate investment in the blockchain would take more time. It could be due to the technology’s inherent issues, mostly related to its scalability in a distributed environment. Also, there are concerns raised about the blockchain’s potential use case over an already available database management technology.

“Banks are now working on various use cases leveraging the integrity of data that blockchain provides, thus creating a single ‘golden source’ that can be viewed by multiple parties. This is a key advantage,” reasoned Finextra.

Hong Kong Restricts Bitcoin Mining, Will it Lead to a Change in Attitude Towards Crypto?

At the start of this month, James Lau, Hong Kong’s Secretary for Financial Services and Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also signal a change in attitude towards crypto by the Hong Kong authorities?

Hong Kong’s Changing Crypto Landscape

Hong Kong is a center for fintech innovation and a significant market within the blockchain economy. As a Special Administrative Region, it benefits from different legislative rules than Mainland China – which shows in their liberal approach to cryptocurrency. At present, there are no statutory instruments to regulate cryptocurrencies directly. However, Hong Kong legislators are working towards changing this.

As cryptocurrencies have grown in popularity, so has regulatory concern over investor protection. In November 2018, the Securities and Futures Commission (SFC) revealed proposals for a new regulatory framework, which focused on exchanges. But more specifically, outlining a route to the licensing of crypto exchanges.

The SFC is approaching the matter in exploratory terms. Ashley Alder, CEO of the SFC, said:

“Those exchanges that want to be regulated by us will be set apart from those that don’t. This is essentially an opt-in approach for exchanges and platform operators, and they will first explore the conceptual framework with us in a strict sandbox environment.”

Under this scheme, crypto exchanges are required to deal only with institutional investors. Which the SFC sees as necessary for safeguarding investors. But as yet, there is no specific timetable for proceedings.

The Response To Crypto Exchange Regulation

While this move is indicative of a maturing crypto market. And confirmation of the growing acceptance of cryptocurrency as a legitimate asset class. Some believe the “sandbox” proposal is a step too far. Leo Weese, Bitcoin Association of Hong Kong President, believes the recommendations are unnecessary and will lead to an exodus of exchanges. Speaking to the South China Morning Post, he said:

“While Hong Kong was a better place when it did not bother such platforms, it was inevitable this day would come. Exchanges will likely maintain parts of their teams in Hong Kong, but work harder to convince the public of a new narrative that places them outside the SAR.”

Is Hong Kong Following China’s Lead?

Recently, the world’s largest producer of crypto mining equipment, Bitmain lapsed its IPO application for the Hong Kong Stock Exchange. Some have attributed this to low Bitcoin prices, affecting the company’s financials. But then again, others see this move as symptomatic that Hong Kong is no longer the crypto haven it once was.

Although regulation is a necessary component for investor protection and confidence, are the harsh exchange proposals and restrictions on purchasing mining equipment too much?

Hong Kong prides itself on being the freest economy in the world. The Index of Economic Freedom examines factors related to taxation, government intervention, and openness to global trade and investment. It scored Hong Kong first, ahead of Singapore in second place.

That being so, one must wonder why cryptocurrencies are not afforded the same leeway.

Is Softbank Right to Stay Away From Crypto After Son’s $130M Bitcoin Loss?

While Bitcoin (BTC) has always been about improving the world’s financial and political wellbeing, this nascent market isn’t all too kind. Over the course of 2018, retail investors across the board lost their shirts, industry employees were laid off, and crypto’s reputation and presence in the mainstream sadly fell off the map.

But no one entity or investor is likely hurting as much as Masayoshi Son. Reports from mainstream financial news outlets revealed Tuesday that the founder of SoftBank, a multi-faceted Japanese corporate giant, lost over $100 million trying his hand at Bitcoin, uh, investment.

Softbank Founder Loses Millions In Bitcoin Investment

$130 million — that’s how much Son lost playing at the Bitcoin craps table, according to “people with knowledge of the matter” anyway. These sources claim that Son’s high-ticket run-ins with the cryptocurrency market came in late-2017, literally the worse time possible.

The people claim that the Japanese billionaire, who purportedly sports a net worth of a casual $30 billion, bought BTC as it rallied past $19,000, just as SoftBank was acquiring Fortress Financial, crypto fanatic Mike Novogratz’s former stead, for $3.3 billion. Funnily enough, the sources claim that this relationship may have sparked the interesting bet. They tell outlets that Peter Briger, an executive at Fortress, expressed interest in Bitcoin and other cryptocurrencies, potentially leading to Son’s unfortunate feeling of likely FOMO (fear of missing out).

It isn’t clear when Son sold his holdings, but if a $130 million loss was sustained, it probably came well after December 2017’s peak and prior to BTC’s recent move above $5,000. Sources add that this heavy loss has led Son to stave away from having the Vision Fund, a SoftBank-backed venture capital giant that has access to $100 billion in principal, from investing in blockchain technologies and cryptocurrencies.

Should He Have Capitulated? 

Should have Son capitulated though? According to many commentators and crypto enthusiasts on Twitter, no, no the SoftBank founder shouldn’t have fled from his Bitcoin holdings. As Twitter user Stephen hints at, the problem with Son’s investment strategy was that he ‘sodled’, not ‘hodled’.

Jokes aside, some are sure that Son was wrong to sell after a massive sell-off, as all indicators seem to suggest Bitcoin will head higher over the long-term, and fast too. As Adaptive Capital’s Murad Mahmudov, who is 75% sure the crypto bottom is in, suggests, Bitcoin may be nascent, just like when Neanderthals stumbled across unrefined gold, but it will soon become monetized. The prominent trader explains that as the world and society are deeply interconnected and intertwined through the Internet. But if BTC becomes a viable form of money, where exactly could it head?

Per Anthony “Pomp” Pompliano, the sky’s effectively the limit. As the former Facebook staffer opined in a recent Twitter post, he believes that Bitcoin is the only asset with a ~$100 billion market capitalization that has a realistic chance of going parabolic. In the eyes of the permabull, BTC could see a value increase of 20 to 50 times over the next five years, which would place the value of each coin at $110,000 to $275,000. This six-figure prediction may sound absurd, but the fundamentals and technicals seem to support his reasoning.

As popular trader Filb Filb notes, if Bitcoin follows the Internet industry’s historical growth cycles of staggered booms and busts, if the asset continues to see its issuance steadily dwindle, and if global debt continues to increase, his model forecasts BTC trading at $333,000 by 2023.

And if Bitcoin rallies strongly to the moon, Son might be left with a rather bitter taste in his mouth. Well to be fair, $130 million is just 5.4% of his reported net worth. So ouch, but not really.

Featured Image from Shutterstock

Bitcoin Bears Fail Miserably in Stopping Huge Institutional Demand For Crypto

As much as some cynics, such as traditional investor Mark Dow, like to paint it, institutions are heavily invested in the crypto space already. Sure, the Chicago Board Options Exchange (CBOE) recently divulged that it intends to put its Bitcoin (BTC) futures vehicle on the backburner, but investment statistics accentuate that big names are flooding into this space.

Institutions Are Still Throwing Money At Crypto

Business Insider reports that “major financial institutions,” coupled with prominent venture capital groups and technology powerhouses, are continuing to catapult money at the cryptocurrency and blockchain space. Data suggests that in the past four months alone, startups in this embryonic space have secured $850 million in 13 large deals.

Lesser-known yet respected crypto exchange Liquid, for instance, just closed its Series C funding round, which saw its private value rise to over $1 billion. Liquid saw cheques written from IDG Capital, a prominent Asia-centric venture fund, and Bitmain, the Bitcoin mining space’s most prominent yet controversial player. In the same vein, Bakkt, the cryptocurrency initiative/platform backed by NYSE’s owner, the Intercontinental Exchange (ICE), saw a casual $182.5 million fly its way, kicking off 2019 with a bang.

This influx of funding comes in spite of “finance execs’” worries that blockchain as a technological advancement still has an array of drawbacks: lack of regulatory clarity, failure to interoperate, a lack of network continuity, intellectual property concerns, and an inherent inability to scale.

If the level of investment keeps its pace for the rest of fiscal 2019, annual funding for blockchain and crypto asset startups will have seen its “second consecutive annual record,” as last year saw $2.4 billion raised in 117 different deals.

Interestingly, this figure cited by Business Insider contradicts the $1.6 billion of 2018 funding mentioned by industry analytics unit Diar, but the point is clear nonetheless: big names in finance, tech, and investment are still interested in this industry, 80% collapse aside.

Bitcoin Markets Already Have Heavy Institutional Influence

Not only does the financing side of the cryptocurrency space have a heavy institutional atmosphere, but so does the Bitcoin markets themselves. In fact, on Tuesday, Matt Hougan, the head of research at Bitcoin exchange-traded fund (ETF) hopeful Bitwise, revealed that as his firm’s trade volume provider revealed that the volume of the CME’s BTC futures passed that of the largest legitimate spot exchange, Binance.

While the CME’s futures are paper-based, meaning that there is no physical collateral in the form of BTC backing them, this does show that institutions do play a bigger role in cryptocurrency than some think.

April 1st’s jaw-dropping surge would confirm this. As reported by NewsBTC previously, analysts and researchers are adamant that Bitcoin’s sudden $1,000 candle was the byproduct of a single trader/entity, rumored to be an institution or large fund located in Hong Kong. Research group CoinMetrics further suggests that the “committed actor,” implying that it was a well-connected whale or institution, played the market like a violin to their advantage, orchestrating trades on multiple exchanges, at times when liquidity was scant, to “maximize price impact.” 

And this concerted effort to boost Bitcoin’s spot value might just be the catalyst that brings the genie out of its proverbial bottle, as institutional ramps are soon expected to launch en-masse.

More Institutional Involvement To Come

Although Bloomberg, citing those familiar with Bakkt’s operations, recently wrote that the U.S. Commodity Futures Trading Commission (CFTC) isn’t all too excited with its Bitcoin futures proposal, the platform is purportedly still chugging along. The sources explained that instead of a green light from the CFTC, Bakkt is looking for a stamp of approval from New York’s regulators, which have historically been stringent, albeit still cautiously amicable towards Bitcoin-related ventures.

If the exchange secures this approval, Bakkt will soon launch its futures product, which many pundits expect to be a hit with institutional players waiting on the sidelines with millions, if not billions of dry powder.

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Would McAfee’s Revelation of Satoshi Nakamoto Affect Bitcoin Prices?

Crypto warlord John McAfee has been making waves from his yacht in the Bahamas recently. He claims to have spoken with the elusive Bitcoin creator Satoshi Nakamoto and has threatened to reveal his identity. Several in the industry have already commented on the negative impact this may have on Bitcoin and crypto prices.

Who Is Satoshi Nakamoto

Bitcoin has been on a roll recently as April has seen the asset lift itself off the floor and surge 36 percent to top out over $5,600. Just yesterday BTC broke through resistance as the fabled ‘golden cross’ formation occurred signaling further bullish gains.

Outspoken antivirus pioneer John McAfee could throw a digital spanner into the works if he makes good with his threat to reveal the identity of Bitcoin father Satoshi Nakamoto ‘within a week’. Speaking to Bloomberg McAfee rescinded the threat on legal grounds stating;

“The US extradition request to the Bahamas is imminent. I met with Mario Gray, my extradition lawyer, and it is now clear that releasing the identity of Satoshi at this time could influence the trial and risk my extradition. I cannot risk that. I’ll wait.”

He added that he has actually spoken with Nakamoto who was less than pleased about efforts to reveal his identity which has remained elusive for over a decade; “I’ve spoken with him, and he is not a happy camper about my attempt to out him,” adding that he is a technologist that has spent a lifetime pursuing hackers.

McAfee has been known for shilling crypto projects and ICOs for a fee on his twitter feed which currently has over 900,000 followers. His revelation of Nakamoto’s identity may not be the best thing for Bitcoin right now. Fundstrat’s Tom Lee, a renowned crypto bull was quick to react in agreement with the sentiment;

There have been several attempts at finding Nakamoto in the past, a Newsweek article in 2014 fingered a California physicist who denied the report. Australian computer scientist Craig Wright has repeatedly asserted that he is Satoshi himself, claims that eventually resulted in a tweet war and his own version of Bitcoin, Satoshi’s Vision, being delisted from the world’s largest crypto exchange. This recent spat is what urged McAfee to threaten the revelation;

“My entire life I’ve been tracking people who are the best in the world, and hiding their identity. Finding Satoshi was a piece of cake for me,” he added.

Bitcoin Price Reaction?

Satoshi Nakamoto, along with a number of early pioneers, is believed to be one of the largest holders of Bitcoins. It has been estimated that he could hold as many as a million of them which would equate to almost 5 percent of the entire supply. At today’s prices they would be worth around $5.5 billion. Since this stash has not moved in a decade many had presumed he had passed away.

If these Bitcoins enter the market it would put massive pressure on prices noted Bloomberg comparing the scenario to Mt Gox trustees dumping BTC on the market previously. Bitcoin could quite possibly dump back to new lows if a million more of them enter the market and the crypto market could freeze over once again.

Bitcoin (BTC) Price Trend Overwhelmingly Bullish & Dips Remain Attractive

  • Bitcoin price started a downside correction after trading as high as $5,641 against the US Dollar.
  • The price tested the $5,500 support area and recently bounced back above $5,580.
  • There is a key bullish continuation pattern in place with resistance near $5,595 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains well supported on the downside and it could climb to a new 2019 high above $5,641.

Bitcoin price remains in a strong uptrend above $5,400 against the US Dollar. BTC is moving higher once again and it is likely to accelerate above the $5,650 and $5,700 levels.

Bitcoin Price Analysis

Yesterday, we saw a solid rise in bitcoin price above the $5,400 and $5,500 resistances against the US Dollar. The BTC/USD pair even broke the $5,600 level and settled above the 100 hourly simple moving average. The price traded to a new 2019 high at $5,641 and later started a downside correction. It broke the $5,600 level and the 23.6% Fib retracement level of the last wave from the $5,361 low to $5,641 high.

However, the price found a strong support near the $5,500 level. The 50% Fib retracement level of the last wave from the $5,361 low to $5,641 high also acted as a support. Moreover, yesterday’s bullish trend line with current support at $5,420 is intact on the hourly chart of the BTC/USD pair. Besides, there is a key bullish continuation pattern in place with resistance near $5,595 on the same chart. If there is an upside break above the triangle and $5,600, the price is likely retest the $5,640 level.

The current price action is positive and it seems like the price could even surge above $5,650. The next stop for the bulls could be $5,700 or $5,720. On the downside, an initial support is near the $5,520 level. If there is a downside break below the triangle, the price could test the $5,460 support. It represents the 61.8% Fib retracement level of the last wave from the $5,361 low to $5,641 high.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is clearly trading in a strong bullish trend above $5,460 and $5,500. There are high chances of a break above the $5,650 level. It will most likely open the gates for another run towards the $5,800 or $6,000 level in the coming sessions. Conversely, a close below $5,400 may negate the current bullish view.

Technical indicators:

Hourly MACD – The MACD is about to move back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD jumped back above the 50 level and it is currently above 60.

Major Support Levels – $5,520 followed by $5,460.

Major Resistance Levels – $5,600, $5,640 and $5,700.