The month of May 2021, will definitely go down in history as one of Bitcoin’s most volatile to date. Bitcoin opened the month at the $57,632 price area and would go on to hit a local high of $59,500 on May 8th. As soon as the latter level was reached, Bitcoin began a pullback that was accelerated by FUD that saw the King of Crypto hit a local low of $30k on May 19th.
Key to Bitcoin’s woes in the month of May were the following two events:
Bitcoin Closes the Month of May with -35.31% in Monthly Returns
It is with this brief background of events that Bitcoin has closed the month of May with -35.31% in monthly returns. This is the lowest value of monthly returns after September 2018 which closed with -36.57% as highlighted in the following chart courtesy of Bybt.com.
Bitcoin Gets Rejected at $37,894 and Still Trading Below the 200-day MA
Earlier today, Bitcoin hit a local high of $37,894 where it got rejected and started another slow fall to current levels of $35,917.
To note is that Bitcoin is still trading below the 200-day moving average for a total of two weeks now. The moving average is proving to be a tough resistance zone at $40k and will determine whether Bitcoin returns to bullish territory in the days and weeks to follow.
Bitcoin continuing to consolidate below this key moving average, increases its chances of a drop to $30k once again or even to the $28k support zone.
However, the new month of June might provide renewed optimism in Bitcoin and digital assets as crypto traders put behind the two events of Elon Musk sharing his concerns of BTC mining being detrimental to the environment, and China reiterating its 2018 ban on Bitcoin mining and crypto trading.
Therefore, $40k and the 200-day moving average might be regained by Bitcoin in the days and weeks to follow.