The worst May ever for bitcoin?
According to William Suberg, “Strong hands are hodling stronger than ever as May 2021 lines up to be the worst May ever for Bitcoin.” In other words, those who can afford to hold onto their crypto without feeling the pain of the price drop are able to stay in the market. Those who can’t afford to lose their investment have jumped out.
May has ended with a week of uninspiring price performance and bitcoin is still stuck in the lower $30,000 range. Of course, that is not the end of the story. With inflation worrying traditional markets and summer months traditionally good for bulls, there may yet be cause for celebration, so things could become interesting for retail investors once again.
3 factors affecting the crypto market
- Fears about inflation are causing changes of direction, fueled by concerns about the international rebound from the coronavirus pandemic and by huge central bank liquidity creation, as well as the long-term impact of engineered “recoveries” worldwide.
- Weaker investors are selling. Depending on who you ask, this setup is either a golden accumulation opportunity or a nightmare — and the split seems to match with market experience.
- Key price averages need to be watched. Decentrader highlighted the 200-day moving average (DMA) and 20-week moving average (WMA) as significant levels to watch.
Is this the worst May ever? In terms of monthly returns for Bitcoiners, it definitely looks like it, as on the last day of the month losses for hodlers totaled almost 40%. Basically, May 2021 is currently on track to be the worst month since 2013 in terms of both Q1 and Q2 performance. But it isn’t over. Some altcoins are showing better signs of life, and the volumes for ETH, the second largest cryptocurrency, are promising.