Bitcoin Price Set To Hit Yearly Highs In May - Here Are The Potential High Levels

The Bitcoin (BTC) bulls are once again gaining traction as the market shows signs of growth. According to economist and crypto trader Alex Krüger, BTC is set to hit a new yearly high in May 2023, driven by the ongoing economic uncertainty and the weakening of US regional banks.

The Failure Of The American Banking System

Krüger recently tweeted that Bitcoin is holding its own despite the collapse of several US banks. Bitcoin’s negative association with bank paper, he says, is no coincidence, and small banks are currently shattered. This indicates that Bitcoin is sought after as an economic sanctuary in the face of the economic uncertainties brought on by the ongoing epidemic and geopolitical tensions.

New $BTC highs coming in May
Hope you are ready for it
— Alex Krüger (@krugermacro) May 3, 2023

Bitcoin vs. SPX: Chart Analysis Points to Continued Growth

Pseudonymous crypto strategist Kaleo has been tweeting about his optimism for the king crypto this month. He concludes that the Bitcoin price will soon rise above $40,000 based on a comparison with the S&P 500 Index (SPX).

#Bitcoin vs. $SPX
Looking at the BTC / SPX ratio, we still haven’t even broken above the 2017 ATH.
With BTC continuing to strengthen as its proving to be a safe haven from fear in the banks, a return to the May ’22 breakdown level feels pretty intuitive.
That would be ~$40K. pic.twitter.com/XLXnOmS62Y
— K A L E O (@CryptoKaleo) May 3, 2023

Kaleo’s analysis

Kaleo’s prediction from a year ago came true as BTC reached its current SPX value. After surpassing the $30,000 resistance level, the analyst expects BTC to rally to the upper HTF diagonal trendline from the February breakout, putting Bitcoin’s cost at $33,000-$34,000.

Data from TradingView also indicates similar sentiments as Bitcoin’s dominance rate has surged to nearly 49%, the highest in 22 months, showcasing its superior performance compared to the broader market.

What’s Driving Bitcoin’s Bull Run?

Bitcoin’s bullish run is fueled by several causes. Geopolitical tensions and the epidemic caused economic uncertainty and made digital assets an investor’s safe haven. Additionally, Tesla and MicroStrategy, institutional investors, have shown increased interest in Bitcoin, mainstreaming it. Finally, decentralized finance (DeFi) and new blockchain technologies are expanding cryptocurrency investor opportunities, which may boost Bitcoin and other cryptocurrency demand.

Source: https://coinpedia.org/bitcoin/bitcoin-price-set-to-hit-yearly-highs-in-may-here-are-the-potential-high-levels/