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The Crypto Month – The Bulls Take May

Bob Mason

What a month for the Bitcoin bulls…

Bitcoin rose by 3.18% on Friday. Partially reversing a 4.72% slide from Thursday, Bitcoin ended the day at $8,532.70.

A bearish start to the day saw Bitcoin slide to a mid-morning intraday low $8,099.90 before finding support.

Steering well clear of the first major support level at $7,813.67, Bitcoin rallied to a late intraday high $8,550.00.

In spite of the afternoon rebound, Bitcoin fell well short of the first major resistance level at $8,917.67 on the day.

While down by 2.3% for the current week, it was a particularly bullish month, with Bitcoin rallying by 52.4%.

Of greater significance in the month was Bitcoin’s breakout from the 62% FIB to form a near-term bullish trend back on 13th May.

Rallying from a 1st May monthly low $5,577.5, Bitcoin struck a monthly high and new swing hi $9,109.0 on Wednesday before easing back.

The Rest of the Pack,

Across the rest of the top 10 cryptos, there was nothing mixed about the month, with the majors firmly in the hands of the bulls.

Leading the way and returning into the top 10, by market cap, was Bitcoin Cash SV, which surged by 259%.

A distant second was EOS, which rallied by 68.4%, with Bitcoin Cash ABC and Ethereum not far behind, rising by 67.3% and by 66.9% respectively.

Trailing the pack through the month were Ripple’s XRP and Stellar’s Lumen, which gained 34.7% and 25.5% respectively.

For Cardano’s ADA, a 20.3% gain for the month wasn’t enough to hold onto its position in the top 10.

The bullish month saw the total crypto market cap jump from $175bn to a month high $286bn on Thursday before easing back to end the month at $264bn.

24-hour trading volumes also saw a sizeable increase, rising from $40bn levels to $100bn levels at the end of the month.

On the news wires

The SEC decision to delay its review of the Bitcoin ETFs was the biggest news of the month.

Of greatest influence, however, was news of Bitcoin Cash SV’s Craig White obtaining copyright registrations over BTC’s whitepaper and 2009 code.

Since the Bitcoin Cash hard fork back in November, Bitcoin Cash ABC became the chosen one. The general view was that Craig White couldn’t be Satoshi Nakamoto. His latest move certainly planted a seed of doubt into the market.

Comparing Bitcoin Cash SV’s return for the month against the global equity markets, well…

The Dow Jones fell by 6.69% in May, with the NASDAQ sliding by 7.93%. Worst yet, the Hang Seng slumped by 9.42%.

Trade wars and negative sentiment towards the global economic outlook couldn’t have come at a better time for the crypto market.

This Morning,

At the time of writing, Bitcoin was down by 0.3% to $8,507.0. A range-bound start to the day saw Bitcoin fall from a morning high $8,570.0 to a low $8,485.0.

Bitcoin left the major support and resistance levels untested early on in the day.

Elsewhere, Bitcoin Cash ABC and Ethereum bucked the trend with gains of 0.42% and 0.75% respectively.

The rest of the pack were in the red. Leading the way down was EOS, falling by 1.35% at the time of writing.

For the Day Ahead

A new month and another bearish start to the day for the majors.

The Bitcoin bulls will be looking to keep the upper hand and deliver a 5th consecutively monthly gain.

On the day, a hold onto $8,500 levels through the morning would support a recovery of the early losses.

A move through to $8,580 levels would bring the first major resistance level at $8,688.50 into play.

Barring a broad-based crypto rally, Bitcoin would likely come up short of $8,700 levels on the day.

In the event of a weekend crypto rally, Bitcoin would likely take a run at the second major resistance level at $8,844.3 before any pullback.

Failure to hold onto $8,500 levels could see Bitcoin test the first major support level at $8,238.4 before any recovery.

Barring a crypto meltdown, Bitcoin will likely steer clear of sub-$8,000 levels on the day.

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This article was originally posted on FX Empire