HomeTradingBitcoin: May 2020 closes in positive

Bitcoin: May 2020 closes in positive

This May 2020 ended with the second consecutive positive candle, something that hasn’t exactly happened in a year, and the good news is that for the first time in 11 months, Bitcoin prices close above the $9,450 range

The last time that the end of a month saw prices above this threshold, at $10,800, was last June 2019

Subsequently, a weak trend began that did not see closures above the $9,450 even during the months of January and February 2020, despite the fact that at the beginning of the year Bitcoin saw prices regain the $10,500 before suffering the drop in March.

This is a comforting sign that sees the positive trend returning on a weekly basis. It is worth saying that in 11 weeks since the sinking of mid-March, only two have ended in red, both recorded in May. 

This therefore indicates that, despite the moments of uncertainty in the last month, strength and purchases prevail for Bitcoin.

In addition, the second quarter, which started with the month of April, recorded a gain that at the moment makes up for the weakness recorded in the first quarter of 2020, the third consecutive in red, an event that was not recorded since 2014-2015. In that case as well, it was the third and fourth period of the year and first period of the following year.

The positive closing in April and May saw Bitcoin gain about 50%.

The weekend was sparkling with interesting movements for altcoins, starting with Ethereum

After more than three months, ETH revised its $247 share, the highest level since the beginning of March. In addition, both Ethereum and Bitcoin see prices within the bullish channel started from the March lows.

The weekly balance of the first 30 cryptocurrencies per capitalization is above par for all of them. The best rises of the top 20 include Neo (NEO), +19%, as well as Cardano (ADA) which flies 50% and Ethereum which rises 17% on a weekly basis.

ADA 20200601

Cardano, with the strong rise that began a few days ago and was confirmed recently with the announcement of the next network update fork, has seen rises that have allowed it to achieve 10th position in the standings overtaking Tezos (XTZ) who had held it for several months. A very strong signal for Cardano that is positively appreciated by investors with new cash inflows.

Among the best on a weekly basis, there is also Stellar (XLM), which rises by about 14%. Ripple (XRP) remains distant and despite the rise of 5% and the regain of third place in the ranking, still does not give clear signs of the breaking of 20 cents.

LINK 20200601

Chainlink (LINK) also does very well with a rise of 15% on a weekly basis, half of which is due to the rise of the last 24 hours. Chainlink now earns 8%, the best of the top 30 along with Stellar, +4%, and VeChain which registers a +9.5%. 

Chainlink celebrates exactly one year since the launch of the mainnet. Moreover, novelties for its network have arrived in the last few hours, including the integration of oracles for price updates on both cryptocurrencies and stablecoins. 

These oracles will be launched on the Digitex Futures platform. This news, as well as the first anniversary, bring momentum and euphoria and drive up the prices of Chainlink, which with this rise is back in 12th position again.

coin360 20200601
Source: COIN360.com

The day sees a slight prevalence of red signs, with about 55% of cryptocurrencies in negative territory. However, this should not be misleading because during the weekend there were important signs, especially for altcoins. 

This leads the market cap to rise above 270 billion dollars, the highest level since the end of February, when the peak of total capitalization since last summer was recorded, exceeding 300 billion dollars. 

Bitcoin’s dominance is falling back to 65%, while Ethereum is gaining a good slice of the market at 9.8%, the highest level since the end of April when ETH reached 10%. Ripple maintains its market share just under 3.4%.

BTC 20200601
Bitcoin chart by Tradingview

Bitcoin (BTC)

After recovering the $9,500, Bitcoin continues to fluctuate around this level. 

In the coming days it will have to find confirmations with pushes over $9,750-9,800, the peaks of mid-May 2020, marked a few hours after the third halving, following the sinking in area 8,100 which then saw a leap that reached $10,000 on the day of May 14th, 2020.

These are the levels that Bitcoin will have to overcome to reach the 2020 records set in mid-February in the $10,450.-10,500 area. 

Technically for Bitcoin, a failure to break the $9,800 in the coming days could draw a dangerous bearish head and shoulders in the medium term, which would see the first support in the area $8,500. 

This fear would be dispelled by exceeding $10,000 in the next few days.

ETH 20200601
Ethereum chart by Tradingview

Ethereum (ETH)

The rise of the last 5 days sees Ethereum’s performance gain 25% from the highs recorded over the weekend, with prices hitting 247 dollars, the highest point since the beginning of March, putting behind all the decline and fear of the first half of March, caused by the explosion of the Covid crisis that brought down all financial markets globally

This rise puts the negative phase of March 2020 behind us. The uptrend confirms the positive trend of ETH which started from the lows of mid-March. 

It is now important not to fall back below $210-205 to consolidate the uptrend in the coming weeks.

A break from Saturday’s (May 30th) highs of $247 would open space for a return in the coming weeks to test the February highs in the $285 area


Federico Izzi
Federico Izzi
Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".