## Overview of Bitcoin's Current Performance
Bitcoin is currently experiencing one of the strongest May months in its history, approaching a record monthly close. According to the latest data, the price of BTC is trading around $106,000, after temporarily rising during the Asian trading session, coming close to its all-time high (only $3,000 off). This strong performance comes in the context of an ongoing bull market, as the cryptocurrency fear and greed index remains high in the "greed" zone at 71 points.
## Factors Driving Strong Performance
1. Regulatory and Political Support
Markets have recently witnessed positive regulatory developments, with the U.S. Senate making significant progress on a comprehensive bill to regulate cryptocurrencies, reflecting an increasing consensus among parties on the need for regulatory clarity. The Texas House is also discussing a "Bitcoin Reserve" bill proposing the establishment of a state-managed Bitcoin reserve.
2. Strong Technical Support
Technically, Bitcoin shows remarkable strength:
- The critical support area around $91,000 has held up well in recent price actions
- Bitcoin needs to close the current monthly candle above $96,000 to maintain its upward momentum
- There is a possibility of forming a "golden cross" on the daily chart, a pattern historically associated with significant price increases
3. Strong institutional flows
Markets have seen significant investment inflows, with Strategy acquiring 7,390 BTC at an average price of $103,498. Tether's holdings of U.S. Treasury bonds have also surpassed those of Germany.
## Forecasts and Potential Risks
### Possible Scenarios for the Coming Days:
1. Continuing to rise If Bitcoin closes the month above $96,000, it may indicate the continuation of the upward trend with the possibility of testing new record levels
2. Support test Bitcoin may return to test the support area around $91,000 before resuming its upward trend
3. Sharp correction If Bitcoin fails to maintain support at $91,000, we may see a deeper correction
### Liquidation Risks:
- More than $3 billion in short positions are at risk if the price rises to $110,000
- Conversely, a drop to $94,612 could lead to similar long position liquidations
- Analysts point to a "liquidation magnet" above the $107,000 level that could lead to the liquidation of billions of dollars in short positions
## Broader Market Overview
While Bitcoin leads the scene, some altcoins are showing promising performance:
- Ethereum has shown relative strength in its recovery, ending a five-day losing streak against ETH/BTC
- Investment products dedicated to Ethereum have seen significant inflows totaling $785 million
- CME launched XRP futures contracts, which could enhance the liquidity of this currency
## Conclusion
Bitcoin stands on the brink of a historic month that could record the highest monthly close ever. The positive regulatory environment, strong technical support, and large institutional flows all contribute to supporting this scenario. However, the market remains sensitive to volatility, especially as we approach the end of the month and test critical resistance levels.#BTC
