We asked ChatGPT if Bitcoin (BTC) can hit a new ATH this month

TL;DR

The price of Bitcoin dipped recently, but has started to recover, raising hopes for a possible recovery in May. Favorable regulations and increased institutional adoption could fuel a significant increase in BTC prices (according to ChatGPT). What are the odds of a BTC rally in May?

Despite a promising start to the year and a surge to an all-time high price in March, Bitcoin’s progress stalled in April. The major cryptocurrency did not start May on the right foot, declining to $56,800 (the lowest level in almost two months).

The last few days were a bit more bullish, with BTC recovering some lost ground and briefly rising towards the $60,000 mark. As such, we decided to ask ChatGPT if the asset can see a more substantial rally and take advantage of a new ATH during this month.

While the popular AI-powered chatbot didn’t rule out the possibility, it outlined numerous factors that should be considered for this price expansion.

Favorable regulatory news was cited as a major contributor. ChatGPT estimated that the approval of additional ETFs may lead to a resurgence. Another regulatory development that could positively affect the entire cryptocurrency market is a decisive victory for Ripple in its legal battle against the SEC.

We remember that the trial between the entities began at the end of April, with the company previously achieving three partial judicial victories.

The second most important factor named by ChatGPT is institutional adoption. “Increased adoption by large institutions such as mutual funds, banks or corporations may lead to significant capital inflows into Bitcoin,” the chatbot stated.

Technological advances, market sentiment, macroeconomic conditions and supply dynamics were also added to the list of essentials.

The signs that the BTC surge is coming

Several indicators suggest that Bitcoin’s correction might not last long. One example is the MVRV (Market Value to Realized Value) metric, which has seen a decline since the beginning of April.

A score above 3.5 suggests that BTC price is near its peak, while a score below 1 warns of a bottom. The MVRV ratio fell to 1.87 on May 2, showing a buy signal for the asset.

Another sign is the net exchange flow of BTC, which has been predominantly negative in the past two weeks. The shift from centralized platforms to self-custody methods is considered bullish as it reduces immediate selling pressure.

Perhaps the most obvious element hinting that a Bitcoin bull run is just around the corner is the halving that took place last month. The event, after which miners’ rewards for validating blocks on the blockchain were halved, has historically been a precursor to a major renaissance of the entire crypto sector. Those who want to learn more about its specifics, feel free to watch our dedicated video below:

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