Historically, May has been the fourth-best month for bitcoin.Read MoreFeedzy
It’s that time of the year again when investors wonder, “should I sell in May and go away?” The famous traditional market adage may not apply to bitcoin (BTC), however, according to seasonality analysis.
Bitcoin has logged gains in May in seven years out of the past 11 years, per charting platform TradingView’s bitcoin index, which records prices from July 2010.
Historically, May has been the fourth-best month for the cryptocurrency.
“In terms of seasonality, May is considered a relative success for BTC. Over the past 11 years, bitcoin has ended the month up seven times and down four times,” Alex Kuptsikevich, senior market analyst at FxPro, said in an email.
“The average rise was 27%, and the average decline was 16%. Under these scenarios, the estimated average range for BTC at the end of May is between $32,000 and $48,000,” Kuptsikevich added.
Past performance is no guarantee of future results, more so as bitcoin’s market composition has changed significantly since 2020, with institutions and macro traders having more say in determining prices.
These entities treat bitcoin as a risk asset and could liquidate their holdings if bears continue to dominate the action on Wall Street.
The chart below shows the second quarter of the second year of the U.S. presidential cycle is bearish for S&P 500, the Wall Street’s benchmark equity index.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
The latest price moves in bitcoin (BTC) and crypto markets in context for May 6,…
The Bitcoin network has reached a major milestone, processing its one billionth transaction yesterday, an…
The current Bitcoin price behavior and its deviations from expected cyclical patterns remain a central…
Bitcoin, the trailblazer of cryptocurrencies, reached a symbolic milestone this weekend, processing its 1-billionth transaction.…
Bitcoin price started a steady increase above the $62,500 resistance. BTC is again struggling to…
In the last week, Bitcoin has shown much resilience bouncing back above the $60,000 zone…