Bitcoin experienced a notable rise on May 20 but has since seen its price fall. Investors typically sell as the price nears general resistance levels. Despite this, liquidity inflows into spot Bitcoin exchange-traded funds (ETFs) continue. Data from Farside Investor reported a total influx of $500 million into spot Bitcoin ETFs over May 20-21.
What Do Analysts Say?
Some experts have voiced concerns about Bitcoin’s short-term price trends. John Bollinger, the creator of Bollinger Bands, suggested on X that Bitcoin’s current price movement indicates a period of consolidation or a short-term pullback. Material Indicators, another prominent firm, noted that Bitcoin flashed a clear bearish signal after failing to hold above $71,500.
Why Is Ethereum Gaining Attention?
While expectations for Bitcoin’s rise remain, focus is shifting towards Ethereum, driven by the potential approval of spot Ethereum ETFs in the United States. Should approval be granted, positive sentiment in the cryptocurrency market could rise, benefiting Ethereum and possibly lifting other altcoins.
User Insights
For investors and traders, here are key takeaways:
- Bitcoin’s failure to maintain price above $70,000 indicates strong resistance.
- The potential approval of Ethereum spot ETFs in the U.S. could spark market interest.
- Short-term consolidation in Bitcoin may provide buying opportunities at lower levels.
- Monitoring Ethereum’s resistance levels is crucial for future price predictions.
Bitcoin Price Outlook
On May 20, Bitcoin surged past $68,000 but could not reach its all-time high (ATH) of $73,777, leading to a pullback. Bulls attempted to hold the price at $70,000, but were unsuccessful. If Bitcoin can reclaim the $70,000 level, it may target $73,777 and potentially $80,000 and $84,000. However, continuous decline might signal a prolonged consolidation phase as bears defend the $73,777 mark.
Ethereum Price Analysis
Ethereum’s price showed signs of a trend reversal by breaking above the resistance line of its descending channel on May 20. Bulls pushed the price over the $3,730 resistance level. If they maintain this level, it might indicate that bears have conceded, allowing the ETH/USDT pair to rise to $4,100 and possibly $4,868. A drop below $3,730 could, however, pull the price down to the 20-day EMA of $3,224.