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Bitcoin price prediction

By examining the BTC price history and market forecasts, we will be attempting to formulate a Bitcoin price prediction for May 2020.

Bitcoin Overview

Bitcoin reigns as the top crypto in the world according to a market cap of $129,640,176,409 and a trading price of $7,070.33. There are currently 18,335,812 BTC in circulation out of a total of 18,335,812 BTC. $33,471,929,188 worth of Bitcoins has been traded in the last 24 hours.

Bitcoin Price Prediction: Analysis

After slowly climbing from $5000 levels and closing March at $6,400, BTC established stability above $6,600 in April.

On April 6th, Bitcoin managed to surpass the $7000 resistance level, touching $7.271.  The coin continued to rise until April 7th, when it peaked a little above $7.427,94. But BTC was not able to keep these gains and feel back down to $7,130.

BTC/USD price chart

Bitcoin then spent the rest of the week trying to recover back to higher levels, but it has become harder for the coin to sustain gains above $7,000.

Another low correction happened on April 10t, which took BTC from $7,300 to $6,800, bringing the coin down to $6,600 support levels. There were some small surges that placed the coin at around $6,900, but on April 15th, the coin dropped back down to $6.642,11.

BTC USD daily chart. Source: Tradingview

btc_apr16_4h-min

btc_apr16_d-min

In the short term, Bitcoin is expected to enter a consolidation phase above $6,600. The coin still has chances of gaining above $7,000 prior to the halving event.

The current pivot, resistance, and support levels calculated by WalletInvestor are:

  •  Resistance Level (R3): 7125.140
  • Resistance Level (R2): 7025.770
  • Resistance Level (R1): 6833.940
  • Pivot Point: 6734.570
  • Support Level (S1): 6542.740
  • Support Level (S2): 6443.370
  • Support Level (S3): 6251.540

Developments

Everyone is anticipating the bitcoin halving, which will occur this May 20, with many analysts and traders posting their predictions on how this will affect the price of the coin in the long and short term.

Since late March, Bitcoin has been used as donations in many charities against the fight against the Coronavirus epidemic.

Delta Exchange revealed on April 16 that Move contracts, an option contract that tracks Bitcoin’s (BTC) daily volatility, recorded a growth of 25% in volume, trading $8 million in the past 30 days.

Pankaj Balani, the exchange’s CEO stated:

“Whilst the first 2 weeks of March saw just over 1Mn worth of BTC MOVE contracts traded, this number was close to 2.5 Mn for the last 2 weeks. Since then, though the volatility has cooled off, volumes in the MOVE contracts are still high and over 4Mn worth of MOVE contracts have already been traded for the month of April. We are seeing the similar trends on ETH MOVE product too.”

Balani explained  that this increase in volume shows that traders have become more interested in using options:

“Traders are taking advantage of the high volatility environment and selling options. We saw strong selling in these products post Black Thursday as volatility spiked to as high as 250%. […] We are in a high volatility environment.”

The CEO also noted that the volatility of Bitcoin was estimated at 40%-50% before the March 12th crash. But after the crash ended, the volatility increased 5 times. Now, the volatility decreased again, and the contracts based on the coin have once again surged.

Balani also stated:

Having contracts listed ahead of time gives traders an opportunity to roll their positions from the current day to the next day right when the contract is launched.”

“Trading a MOVE contract is like trading a futures contract on the absolute movement in price of BTC or ETH. Traders are rather familiar with how futures trading works and hence find trading MOVE contracts much simpler than trading individual options.”

Bitcoin Price Prediction: Market Opinion for May 2020

A number of crypto forecasting sites posted their own Bitcoin price prediction for May 2020 and to provide a more comprehensive market sentiment regarding the future performance of BTC, we have listed some of these forecasts below.

Longforecast

Longforecast predicted that BTC will have a trading price of $6,481 at the start of May. They also estimated that the maximum price of the coin for this month would reach $8,065, while the minimum price will be around $5,892. The monthly average was estimated at a price of $6,694. The closing price was calculated to be around $6,336, change for May -2.2%.

Digitalcoinprice

Digitalcoinprice‘s Bitcoin price prediction sees the coin reaching a price of $13,998.46 in May, which means an increase of 99.53%.

Tradingbeasts

Tradingbeasts anticipated that Bitcoin would debut May at a price of $6,311.525. The maximum price for the month placed the coin at $7,864.432, while the minimum price was calculated at $5,347.814. Bitcoin was projected to close May at a value of $6,291.546, with a change of -6.78 %.

Coinpredictor

Coinpredictor forecasted that Bitcoin will experience a decree of -22.6% in May, meaning that the coin will be trading at $7,137.53.

Gov.capital

Gov.capital estimated that Bitcoin’s trading price for May 1st will be $7237.969, with a maximum price of $8323.66435 and a minimum price of $6152.27365. Below are the rest of the predictions for all the days in May.

Calendar date Regular Least possible price Best possible price
2020 May
2020 May 01, Friday  7237.969  6152.27365  8323.66435
2020 May 02, Saturday  7385.668  6277.8178  8493.5182
2020 May 03, Sunday  7521.330  6393.1305  8649.5295
2020 May 04, Monday  7680.793  6528.67405  8832.91195
2020 May 05, Tuesday  7766.956  6601.9126  8931.9994
2020 May 06, Wednesday  7673.475  6522.45375  8824.49625
2020 May 07, Thursday  7616.634  6474.1389  8759.1291
2020 May 08, Friday  7621.445  6478.22825  8764.66175
2020 May 09, Saturday  7739.603  6578.66255  8900.54345
2020 May 10, Sunday  7836.594  6661.1049  9012.0831
2020 May 11, Monday  7837.108  6661.5418  9012.6742
2020 May 12, Tuesday  7879.318  6697.4203  9061.2157
2020 May 13, Wednesday  7981.619  6784.37615  9178.86185
2020 May 14, Thursday  8183.216  6955.7336  9410.6984
2020 May 15, Friday  8223.744  6990.1824  9457.3056
2020 May 16, Saturday  8141.612  6920.3702  9362.8538
2020 May 17, Sunday  7897.361  6712.75685  9081.96515
2020 May 18, Monday  7886.366  6703.4111  9069.3209
2020 May 19, Tuesday  8181.352  6954.1492  9408.5548
2020 May 20, Wednesday  8225.400  6991.59  9459.21
2020 May 21, Thursday  8257.042  7018.4857  9495.5983
2020 May 22, Friday  8206.692  6975.6882  9437.6958
2020 May 23, Saturday  8066.865  6856.83525  9276.89475
2020 May 24, Sunday  8078.605  6866.81425  9290.39575
2020 May 25, Monday  8159.598  6935.6583  9383.5377
2020 May 26, Tuesday  8162.511  6938.13435  9386.88765
2020 May 27, Wednesday  8208.007  6976.80595  9439.20805
2020 May 28, Thursday  8169.731  6944.27135  9395.19065
2020 May 29, Friday  8195.725  6966.36625  9425.08375
2020 May 30, Saturday  8334.238  7084.1023  9584.3737
2020 May 31, Sunday  8198.089  6968.37565  9427.80235

Cryptorating

Cryptorating’s Bitcoin price prediction for May expects the coin to lose -40.62%, which would place BTC around $4 188.50.

Cryptoground

Cryptoground projects that BTC will reach in May a price of $9,736.8819, signifying an increase of 38.82%.

30rates

30rates made predictions for the first 20 days of April, along with the minimum and maximum values of each particular day.

05/01 Friday $5945 $6839 $6392
05/04 Monday $6062 $6974 $6518
05/05 Tuesday $6004 $6908 $6456
05/06 Wednesday $6136 $7060 $6598
05/07 Thursday $6364 $7322 $6843
05/08 Friday $6384 $7344 $6864
05/11 Monday $6949 $7995 $7472
05/12 Tuesday $6536 $7520 $7028
05/13 Wednesday $6403 $7367 $6885
05/14 Thursday $6048 $6958 $6503
05/15 Friday $6105 $7025 $6565
05/18 Monday $6040 $6950 $6495
05/19 Tuesday $6285 $7231 $6758
05/20 Wednesday $7009 $8065 $7537

Bitcoin Price Prediction: Verdict

With this, we have reached the end of our Bitcoin price prediction for May 2020. We hope that the data we feature above will prove to be helpful to you in your future BTC trading operations.

Featured image: Ethereum World News

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