Bitcoin (BTC) Price Prediction and Analysis in May 2020

By examining the BTC price history and market forecasts, we will be attempting to formulate a Bitcoin price prediction for May 2020.

Bitcoin Overview

Bitcoin reigns as the top crypto in the world according to a market cap of $129,640,176,409 and a trading price of $7,070.33. There are currently 18,335,812 BTC in circulation out of a total of 18,335,812 BTC. $33,471,929,188 worth of Bitcoins has been traded in the last 24 hours.

Bitcoin Price Prediction: Analysis

After slowly climbing from $5000 levels and closing March at $6,400, BTC established stability above $6,600 in April.

On April 6^th, Bitcoin managed to surpass the $7000 resistance level, touching $7.271.  The coin continued to rise until April 7^th, when it peaked a little above $7.427,94. But BTC was not able to keep these gains and feel back down to $7,130.

Bitcoin then spent the rest of the week trying to recover back to higher levels, but it has become harder for the coin to sustain gains above $7,000.

Another low correction happened on April 10^t, which took BTC from $7,300 to $6,800, bringing the coin down to $6,600 support levels. There were some small surges that placed the coin at around $6,900, but on April 15^th, the coin dropped back down to $6.642,11.

In the short term, Bitcoin is expected to enter a consolidation phase above $6,600. The coin still has chances of gaining above $7,000 prior to the halving event.

The current pivot, resistance, and support levels calculated by WalletInvestor are:

•  Resistance Level (R3): 7125.140
• Resistance Level (R2): 7025.770
• Resistance Level (R1): 6833.940
• Pivot Point: 6734.570
• Support Level (S1): 6542.740
• Support Level (S2): 6443.370
• Support Level (S3): 6251.540

Developments

Everyone is anticipating the bitcoin halving, which will occur this May 20, with many analysts and traders posting their predictions on how this will affect the price of the coin in the long and short term.

Since late March, Bitcoin has been used as donations in many charities against the fight against the Coronavirus epidemic.

Delta Exchange revealed on April 16 that Move contracts, an option contract that tracks Bitcoin’s (BTC) daily volatility, recorded a growth of 25% in volume, trading $8 million in the past 30 days.

Pankaj Balani, the exchange’s CEO stated:

“Whilst the first 2 weeks of March saw just over 1Mn worth of BTC MOVE contracts traded, this number was close to 2.5 Mn for the last 2 weeks. Since then, though the volatility has cooled off, volumes in the MOVE contracts are still high and over 4Mn worth of MOVE contracts have already been traded for the month of April. We are seeing the similar trends on ETH MOVE product too.”

Balani explained  that this increase in volume shows that traders have become more interested in using options:

“Traders are taking advantage of the high volatility environment and selling options. We saw strong selling in these products post Black Thursday as volatility spiked to as high as 250%. […] We are in a high volatility environment.”

The CEO also noted that the volatility of Bitcoin was estimated at 40%-50% before the March 12^th crash. But after the crash ended, the volatility increased 5 times. Now, the volatility decreased again, and the contracts based on the coin have once again surged.

Balani also stated:

“Having contracts listed ahead of time gives traders an opportunity to roll their positions from the current day to the next day right when the contract is launched.”

“Trading a MOVE contract is like trading a futures contract on the absolute movement in price of BTC or ETH. Traders are rather familiar with how futures trading works and hence find trading MOVE contracts much simpler than trading individual options.”

Bitcoin Price Prediction: Market Opinion for May 2020

A number of crypto forecasting sites posted their own Bitcoin price prediction for May 2020 and to provide a more comprehensive market sentiment regarding the future performance of BTC, we have listed some of these forecasts below.

Longforecast

Longforecast predicted that BTC will have a trading price of $6,481 at the start of May. They also estimated that the maximum price of the coin for this month would reach $8,065, while the minimum price will be around $5,892. The monthly average was estimated at a price of $6,694. The closing price was calculated to be around $6,336, change for May -2.2%.

Digitalcoinprice

Digitalcoinprice‘s Bitcoin price prediction sees the coin reaching a price of $13,998.46 in May, which means an increase of 99.53%.

Tradingbeasts

Tradingbeasts anticipated that Bitcoin would debut May at a price of $6,311.525. The maximum price for the month placed the coin at $7,864.432, while the minimum price was calculated at $5,347.814. Bitcoin was projected to close May at a value of $6,291.546, with a change of -6.78 %.

Coinpredictor

Coinpredictor forecasted that Bitcoin will experience a decree of -22.6% in May, meaning that the coin will be trading at $7,137.53.

Gov.capital

Gov.capital estimated that Bitcoin’s trading price for May 1^st will be $7237.969, with a maximum price of $8323.66435 and a minimum price of $6152.27365. Below are the rest of the predictions for all the days in May.

Cryptorating

Cryptorating’s Bitcoin price prediction for May expects the coin to lose -40.62%, which would place BTC around $4 188.50.

Cryptoground

Cryptoground projects that BTC will reach in May a price of $9,736.8819, signifying an increase of 38.82%.

30rates

30rates made predictions for the first 20 days of April, along with the minimum and maximum values of each particular day.

Bitcoin Price Prediction: Verdict

With this, we have reached the end of our Bitcoin price prediction for May 2020. We hope that the data we feature above will prove to be helpful to you in your future BTC trading operations.

Featured image: Ethereum World News

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