Bitcoin has surged nearly 71 percent during May, it has been the best month for Bitcoin for this year. Speaking from a seasonality factor, May isn’t supposed to be the best month for Bitcoin as the 5-year average trailing percentage gain sits at -1.95%. The 5-year trailing high is at 0.77%, while the low is -6.08%. Statistically speaking, the best 5-year trailing average percentage month for Bitcoin is still January, where the number stands at 4.99%.
But Bitcoin bulls do not need to worry and the reason that I am saying this is because the same seasonality factor for July looks really strong . How strong? Well, the 5-year trailing high percentage number is 8.33% which means that during this month, the price of Bitcoin can rise up to $9,208.
‘The difficult times for Bitcoin have passed" Dr. Zafar from Bithercash told me. His statement becomes even more prominent when one compares today's Bitcoin price with last years. The crypto king’s price is now higher on a year-on-year basis and this is the first time this has happened in the past 8 months.
In my previous article, I mentioned that the price has the ability to blast past the level of $10,000 in two weeks. Not long left for that to happen. However, the Relative Strength Index shows that the momentum has slowed down significantly, and the RSI has fallen below the critical level of 70. In order for the price to continue to move higher, the RSI needs to respect the trend drawn on the chart below.
Even if the RSI drops below the trend line drawn on the chart, it is not a matter of grave concern. In fact, it will only send a strong message: the price is way oversold. This will attract more buyers.
Remember, the social media giant, Facebook is also set to reveal its own cryptocurrency this month, GlobalCoin. Users will be able to process the transactions via social media channels and Facebook employees will also be offered option to get paid in this coin. Facebook creating its own cryptocurrency will unlock a massive commercial value in developing economies. This will be a brand-new paradigm.
Jon Crowcraft, a professor at the computer science school at the University of Cambridge described the move as “Facebook is turning into Silk Road 3.0”. The question is how big one can get? Basically, we all know that Facebook controls our data, and now with its own currency, the company becomes unstoppable.
To conclude, I am optimistic about the Bitcoin price during this month and I believe the Facebook event will be the catalyst for the Bitcoin price to move higher. Facebook has to make sure that it has nailed all the loose ends because it really is a double edge sword. Any mess up by the firm is going to leave a big dent in the crypto space.