The month of May 2023 begins and the price of Bitcoin is locked in a price range that fluctuates and moves between 27 thousand dollars to 31 thousand dollars.
Jacobo Maximiliano, an analyst at Bitget, shared an analysis with Cointelegraph en Español where shows historically what happened in the month of May and considers, through technical analysis, where the market could go.
The cryptocurrency sector tends to be very volatile and can undergo rapid and significant changes on investor sentiment. Therefore, it is important to stay up to date on news and developments in the said sector. The price of Bitcoin and other major crypto assets can move sharply in any direction in a matter of minutes.
“But it all depends on the strategy that we define, especially with regard to the variable time to recover the investment or obtain the desired return. It is not the same to want to recover the money in days than in weeks or years“Jacob said.
Analysis of the closing monthly candle for April 2023 and possible performance of Bitcoin in May 2023
According to Jacob, analyzing an asset in monthly candles gives you a long-term view of its potential. And above all, it helps to correctly understand the possible cycle movements that may occur in the near future. Bitcoin is no exception.
This table summarizes the percentage returns of BTC since 2013. Jacobo analyzes what happened in the month of May in previous years so that we can have an idea of what can happen in this month that has just begun:
BTC percentage returns since 2013 – Source: Coinglass
Of the 11 years from 2013 to 2023, the month of may ended in red in 6 years. Instead, in 5 of those 11 years it ended in green, that is, in positive returns. However, the last 3 years have been very high for BTC in terms of performance.
Due to these temporary arguments, May is not a month to be overly confident, and the price may continue its monthly downward trend again.
“Obviously, these are statistical data, and at any time they can change color, but It is curious that the month of May has been the worst month of the last 3 years in terms of percentages”, he stressed.
“The reasons we might find are influenced by many different factors. However, historically, the month of May has been a challenging month for financial markets and has been associated with a decrease in market activity and volatility in some cases“said the analyst.
Jacob said that some reasons could be that May marks the start of the summer vacation period in many countries, which could lead investors to reduce their activity in the financial markets. In addition, the month of May has been associated with historical events such as the 2008 financial crisis and 2010 US stock market crash.
“It is very important to bear in mind that when we are going to develop a price scenario for an asset, we are speculating, and there is an inherent risk of operating and suffering capital losses.“Jacob said.
This week is very complex, since the price has settled right in the middle of the range. The logical thing would be to continue with the downward movement, even looking for a key point, which is 25 thousand dollars.support zone that has not yet been restored.
However, above 32 thousand dollars they make him “eyes” at the price of Bitcoinand it is not unreasonable for the price to turn around and catch up with a candlestick.”wick” either “beak”, before falling into the area described in the previous paragraph.
Jacobo reminded us that we must not forget that in the futures chart there is a “GAP” (area not represented) to retest around USD 20,200.
The analyst also highlighted the chart below and the BTC scenario on a 4-hour time frame.
Analysis of Jacobo Maximiliano (Jack Snow) – Source: Bitget
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