Bitcoin, the word for a digital currency, is down in May 2021. It has had one of its worst monthly performances. Some people think it is a good time to buy because it will go up in value while other people worry and are selling their Bitcoins.
People who have been HODLing Bitcoin for a long time are buying more of it now because the price is lower. This means that people who’ve been holding onto Bitcoin are not going to sell it when the market goes down.
In April, the price index for spending in the United States went up by 3.1% compared to last year. This is a big increase from 12 months ago. Some investors might want to buy Bitcoin because it is an uncorrelated asset and people think it can help protect against inflation.
Therefore, it is unlikely that the price will drop below $30,000. But a new bull market might not start right away. The price will be volatile and range-bound before the start of a sustained uptrend.
We can look at the charts of the top-10 cryptocurrency to see what is critical support and resistance levels.