Another month is ending on the crypto market - a month we’ll all want to forget as soon as possible. Indeed, several times this month, the market has strained our nerves and made a rebound that we did not want to see.
In a single month, the total market capitalization fell from a high of $470 billion to a low of $303 billion. This represents a 35% loss between the maximum and the minimum of this month of May.
Bitcoin scored a high of $9254 on May 1st and kept growing until it reached $9980 on May 4th. The BTC then followed a downward trend throughout the month to reach a low point at $7032 on May 29th.
Here’s what seems a little paradoxical this month: on average the news from a fundamental point of view is rather good, yet the market collapsed.
The most striking example is undoubtedly the 2018 Consensus. In fact, this event - which focuses on Blockchain technology and potential market opportunities for the industry in its whole - has historically been a period of growth for the cryptos market. It was not the case this year, on the contrary.
Other indications of growing acceptance are the forthcoming opening of a Bitcoin futures trading desk at Goldman Sachs as well as the creation of an interbank payment application based on Blockchain by JP Morgan. Other news, such as the launch of Tron's Mainnet, further accentuate this positive sentiment. But our objectives have been revised downwards.
So what to expect?
At the end of May, it seems to us that the correction is more and more likely to be finally over.
The technical situation is undeniably improving on BTC in daily time horizon, the WaveTrends has crossed from its oversold zone, the CCI has crossed the level of -100 on the rise and the MACD shows signs of reversal. If the latter actually crosses up, we can talk about a turnaround.
Is June the month everyone’s been expecting? Will we see the market back to new historical levels? We’ll know soon enough.
In the meantime, take care and stay vigilant!