Bitcoin captured attention with its rise on May 20. However, the price seems to be declining again. Generally, investors sell when the price approaches general resistance. Despite this, liquidity flowing into spot Bitcoin exchange-traded funds continues. Data from Farside Investor showed a total inflow of $500 million into spot Bitcoin ETFs on May 20 and 21.
Bitcoin and Ethereum Comments
Some analysts did not hesitate to express their concerns about Bitcoin’s short-term price movements. John Bollinger, who introduced Bollinger Bands, made an important statement on X, indicating that Bitcoin’s price movement suggested consolidation or a short-term pullback.
Similarly, Material Indicators, a significant company, stated that Bitcoin gave a “clear” bearish signal after facing rejection following its move above $71,500.
While there is still an expectation of a rise for Bitcoin, attention is slowly shifting to Ethereum due to the potential approval of spot Ethereum ETFs in the United States. If approval occurs, sentiment in the cryptocurrency sector could increase, and certain altcoins might also see a rise.
Bitcoin Price Outlook
Bitcoin surged above $68,000 on May 20 but failed to reach the $73,777 ATH level and pulled back.
Additionally, bulls tried to hold the price at the psychological level of $70,000 for a while but were unsuccessful. If BTC stays above this level, it was thought to target $73,777 again, but this seems distant for now. If bulls manage to push the price back to $70,000, it could move to $80,000 and then $84,000.
Conversely, if the decline continues, the price could experience a more significant pullback from its current level. This could indicate that bears are defending the $73,777 level clearly. This suggests that the consolidation phase might continue for a few more days.
Ethereum Price Analysis
Ethereum signaled a potential trend reversal by moving above the resistance line of the descending channel on May 20.
During this process, bulls strengthened their position by pushing the price above the $3,730 resistance level. If bulls continue to hold the price above $3,730, it could indicate that bears have given up. The ETH/USDT pair could rise to $4,100 during this period. If this price level is surpassed, bulls could push the price to $4,868.
If the price clearly falls below $3,730 and remains there, it could drop to the 20-day EMA ($3,224) under bearish pressure.
