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Bitcoin (BTC) Price Prediction and Analysis in May 2021

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The number one cryptocurrency has a market capitalization of $1,005,838,267,374 and a circulating supply of 18,691,825 BTC. There is a maximum supply of 21 million BTC, and $60,324,153,299 worth of BTC has been traded in the last 24 hours. By examining the BTC price history and market forecasts, we will be attempting to formulate a Bitcoin price prediction for May 2021.

Bitcoin Price Prediction: Analysis

Breaking several new highs to reach a price of over $50,000, it is also one of the most valuable cryptos on the market. Though the journey has not been all smooth, it has been a consistent upward movement. Looking at the price of Bitcoin, the chart shows it all with the steep rise although made up of both ups and downs.

The 50 Moving Average has served as support for the asset, with the price bouncing off of it a few times on its way down. However, the support provided by the 50 MA was recently breached, and the price has dipped below it and could be heading lower, as shown in the chart below. The bounce off from the 50 MA is shown by the two green arrows pointing upward.

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The RSI reading has fallen sharply towards 40, which means the price could be heading for an oversold condition. This will mean that Bitcoin is undervalued and could be primed for a bounce. In fact, this is the lowest level that the RSI has fallen to since 27 January, when it dropped to exactly 43.00. The long-term sentiment for Bitcoin, however, remains bullish, so a drop to 30 may not be required for a bounce to occur.

Volatility for the asset has also slightly dropped from the previous weeks and months, which means the price has slowed down its movements. It continues to drop in the short-term though, and the downward momentum is quite strong despite the drop being quite slow. For traders, the following are major support and resistance levels to keep in mind as calculated by Walletinvestor:

  • Resistance Level (R3): 53806.43;
  • Resistance Level (R2): 52144.37;
  • Resistance Level (R1): 50574.33;
  • Pivot Point: 48912.27;
  • Support Level (S1): 47342.23;
  • Support Level (S2): 45680.17;
  • Support Level (S3): 44110.13.

Developments

Bitcoin has come a long way and has been criticized by both governments and individuals. One of the countries most noted for its stance against Bitcoin is China. However, this is about to change because China now considers Bitcoin to be an “alternative investment”, the deputy governor of China’s central bank Li Bo says.

Speaking on a panel at the Boao Forum for Asia, Bo said although the country does not consider Bitcoin or any publicly issued digital asset as money, it does consider them as alternative investments.

Bitcoin (BTC) Price Prediction: Market Opinions

The following are market opinions on the performance of Bitcoin in May. They are meant to serve as a guide only and are not absolute values that you should expect.

Longforecast

Longforecast puts its Bitcoin price prediction at the beginning of May at $44,599. The maximum price for the month is $60,232 and the minimum price is $45,367. The predicted closing price for the month is $47,956. This is one of the bearish predictions for Bitcoin in May. If it all plays out, Bitcoin will lose 12.1%.

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Digitalcoinprice

Digitalcoinprice’s Bitcoin price prediction is that it will reach an average of $94,931.64 in May. This is a bullish prediction that expects a 69.36% increase for the asset. It will be the highest price for any month in 2021.

Previsionibitcoin

Previsionibitcoin expects a huge rise in the demand for Bitcoin. As a result, the market cap could grow significantly in May and cause the price to soar as well. The Bitcoin price prediction is that the price will reach an average mark of $71,278.22 in May.

Tradingbeasts

Tradingbeasts is quite bearish on Bitcoin’s performance in May. They predict that the opening price for the month would be $47,793.762. The maximum expected price is $60,502.936, while the minimum price is $41,141.996. The website anticipates that the asset can close the month at $48,402.348, representing a change of -12.43%.

Bitcoin (BTC) Price Prediction: Verdict

Despite Bitcoin’s recent rally, it has slowed down for a few days now. Clearly, analysts expect the downward trend to continue into May. The price has fallen significantly since reclaiming the new $60,000 high though, so it might be ready for a bounce back. However, it is not certain how long before this happens. Although the short-term sentiment is bearish, the long-term remains bullish. Things may turn around before the start of May or not. If you wish to invest, then it will be wise to watch more closely to Bitcoin price prediction in order to know when to make your move.

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These Bitcoin, Ethereum and Solana Price Prediction Charts Are Pure Magic, According to Macro Guru Raoul Pal

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Macro guru Raoul Pal says three price prediction charts for Bitcoin, Ethereum and Solana are working like “pure magic.”

In a new Crypto Banter podcast, the co-founder and chief executive officer of Real Vision compares Bitcoin’s current market cycle to that of 2012-13, suggesting a price target of over $250,000 for the end of this bull run.

“I’ve been using this for over a year, and it’s been pure magic…It gives us a pretty clear target, and it’s been magic. It gave me the strength through the bear market to keep adding, thinking ‘we know how this plays out.’”

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Source: Raoul Pal

The former Goldman Sachs executive then pulls up another chart that compares Ethereum’s price trend from 2016 to Bitcoin’s from 2011 to 2019.

“And so here’s Ethereum VS Bitcoin in 2017. It’s been pretty damn good. In fact, I’ve got this as a real-time chart on my Bloomberg and it almost works to the day right now [because] it’s so close.”

Source: Raoul Pal

Lastly, Pal brings up a chart that shows how smart contract platform Solana (SOL) is following the same path Ethereum did in 2016-2017, which if continued would land SOL above $800 in April 2022.

“The Ethereum price now is pretty exactly in line with the Bitcoin price in 2017. And here’s Solana at the price as ETH, growing faster as a network, but the chart is identical again. It’s crazy.”

Source: Raoul Pal

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Barry Silbert on Converting GBTC Into ETF: “Stay Tuned”

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Digital Currency Group CEO Barry Silbert has started teasing Grayscale’s ETF push

Barry Silbert, CEO of Digital Currency Group, urged his followers to “stay tuned” in response to a tweet about potentially converting its Grayscale Bitcoin Trust into a physically-backed exchange-traded fund.

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ProShares’s Bitcoin futures ETF is set to start trading on Monday after it was greenlit by the U.S. Securities and Exchange Commission earlier this week.  

However, the regulator has so far shot down all the proposals to launch an ETF that will not track the price of Bitcoin directly due to concerns about investor protection. Instead, investors will have exposure to the Chicago Mercantile Exchange’s futures contracts.  

Joe Orsini, director of research at Eaglebrook Advisors, has outlined some risks associated with a futures-based ETF in his recent thread, claiming that it will be applicable for intra-day trading instead of long-term investing.

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Last month, Grayscale CEO Michael Sonnenshein opined that approving a futures-based ETF before a spot-based one would be a “short-sighted” decision.

According to a Thursday report by CNBC, the company is very close to filing with the SEC in order to convert GBTC into a spot-based ETF.

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As reported by U.Today, Grayscale hired ex-Alerian CEO David LaValle to work on such a plan this September.

The leading cryptocurrency asset manager confirmed that it was intending to convert its Bitcoin trust into an ETF in early April.

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Bitcoin ETF Approval is a double Edged Sword in Terms of Price Discovery

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Futures based paper products don’t lead to natural price discovery. There’s so much the players can manipulate on these paper products, which will be fixed in a physically-backed ETF.

In response, Caitlin Long expressed:  Yep, but physically backed ETFs also foster spot price manipulation. As I’ve said for yrs, Bitcoin ETF approval is a double-edged sword.  It brings liquidity, but also brings Wall Street style manipulation and price suppression.

Community response:  I don’t see ever any logic here. Crypto is the Wild West, when it comes to manipulation. How does having liquidity in a more regulated market make the manipulation worse?

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Crypto markets are way more manipulated than any other asset class. Adding an ETF would only dilute the manipulation.

Supply is real with bitcoin paper copies won’t bring more real supply, but can’t the paper push around the price like in gold and silver? I think they will try but will soon discover that the underlying asset isn’t as elastic as gold and silver with a significantly lower inflation rate and stock flow.  Also, gold and silver aren’t 100% auditable by everyone on the planet at all times.

How does a spot ETF foster price manipulation? I don’t really understand the logic here. Most likely, the ETF would simply be buying and storing Bitcoin every single day of its existence.

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What do you think the manipulation would look like? With the open source monetary policy and public blockchain ledger, I think any manipulation would have to be very short lived. They can’t create millions of ‘paper’ BTC like the precious metals markets.

Yeah but unlike gold and silver we can completely verify the total supply, and punish manipulation out of these honest markets. If on-chain metrics unanimously say one thing, futures manipulation will be that much easier to rectify, no?

Wall Street can short BTC through the floor. My guess is they want to hammer the BTC price down and drive everyone back to USD. Same way they control all commodities.

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ETF is a double edged sword, and anyway there’s a lot of manipulation. So, ETF is nothing significant to care about? If the ETF would hurt bitcoin price more than it would help it, the US would have approved it several years ago.

Hard manipulation like in gold/silver market not possible: Withdraw your BTC from the exchange, as soon as supply dries up the price explodes.

With an BTC ETF, have you removed legal tender? Been thinking on this one and I’m not so sure an BTC ETF is the best thing for BTC in the long run. There is always two sides of a coin.

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How can spot price with proof of reserve be manipulated? And how can we move past the financial products created out of thin air, and toward the purpose crypto was created for?

We already have manipulation and suppression in BTC – The Futures-ETF will only serve to deepen that manipulation/suppression. So, Qui Bono? This is not about investors folks!

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