Bitcoin prepares for a record monthly close amid rising bull market

According to Cointelegraph, Bitcoin is on the verge of achieving its highest monthly candle close in history, with only 11 days left in the month. Following a record weekly close of $106,407 on May 18, Bitcoin could secure a new monthly high by closing above $102,400. This potential milestone underscores the ongoing bull market, which continues to gain momentum. The current trajectory of the cryptocurrency suggests it is approaching a 'price discovery' phase, as highlighted by cryptocurrency trader Jelle. Price discovery implies that buyers and sellers are interacting in an undefined range to establish the market price of an asset. A breakthrough above Bitcoin's all-time high of $110,000 would initiate this phase, pushing BTC into an unexplored trading range with successive higher highs until a new equilibrium between supply and demand is reached.

Cointelegraph also noted that Bitcoin is close to confirming a 'golden cross' on its daily chart, a pattern historically associated with price rallies of 45% to 60%. This development coincides with the likelihood of Bitcoin reaching new highs this month. A monthly close near $110,000 would represent a gain of 15% to 17% for Bitcoin in May, marking its best May performance since 2019 and significantly surpassing the historical average monthly return of 8% for the month. Bitcoin researcher Axel Adler Jr. has identified a key technical pattern in Bitcoin's current bull cycle, pointing out three recent instances of 'compression'—periods of tightening price ranges—measured by moving highs/lows over 180 days. This compression often signals an imminent breakout, as evidenced by the 2017 rally when Bitcoin surged from $1,000 to $20,000.