Although Bitcoin has dropped a little in price today, yesterday it achieved a new 10-month high on Bitstamp at $8,335 on 14th May.
Omkar Godbole at Coindesk says it “currently appears on track to post its largest monthly gain since late 2017.” It rose to $8,335 at 08:00 UTC on Tuesday 14th, the highest level since 25th July 2018, according to Bitstamp prices. And although it has dropped back to $8,000 at the time of writing, this still represents a 51.5 percent gain on the monthly opening price of $5,267.
As Godbole says, the last time crypto saw a gain of 50% and more was in 2017 during the height of the bull market. As you may remember, prices rallied 54% in November 2017 due to speculation that the launch of BTC futures on major U.S. derivative exchanges would open the doors to institutional money arriving in the crypto space.
If the price stays above $7,350 at the end of May, the monthly gain will be the highest since November 2017. If it ends up below that figure, it will still have made its biggest gain since December 2018 when the price rallied by 39.5%.
While the bulls are winning the long-term argument for crypto based on technical studies, the short-term position is not quite so glowing. Godbole believes there could be a price pullback in the short term and that BTC could end this month below $7,350. The relative strength index (RSI) for both 14 days and three days is showing “overbought conditions” and as a result, the cryptocurrency may have a tough time scaling the immediate resistance at $8,500 (July 2018 high) in the short-term.
However, if the price rises above $8,335 then it is likely that the cryptocurrency will challenge $8,500, a resistance level last seen in July 2018.