Comprehensive view

As of May 20, 2025, the price of Bitcoin has rebounded slightly to around $103,990, an increase of 0.26% from the previous day’s closing price, indicating a short-term return of bulls. This week, the Bitcoin spot ETF recorded a net inflow of $603.74 million, marking five consecutive weeks of positive inflows, indicating continued strong institutional demand. From a technical perspective, analysts pointed out that if the $101,300 support is broken, a further correction may occur; at the same time, market sentiment has gradually shifted from ‘fear’ to ‘greed’, with the current fear and greed index at 74 (greedy zone). The following content will comprehensively explain the latest trends, fund conditions, and technical signals from multiple perspectives, and provide coping strategies for novice investors.

Latest Price Overview

Image:https://www.gate.io/trade/BTC_USDT

• Real-time price: On May 20, 2025, Bitcoin was reported at $103,990, up 0.26% from the previous day.
• Predicted Range: Several institutions predict that today’s price range will be between $103,200 and $105,800, implying a potential further rise if it breaks above the upper limit, otherwise it may fall back to test the lower limit.
• Macro background: The US dollar index saw a slight pullback, with some funds flowing from traditional assets to the crypto market in the short term, boosting Bitcoin buying interest.

Spot ETF and Institutional Trends

• ETF inflows continue: According to SoSoValue data, as of the week ending May 16th, Bitcoin spot ETF accumulated a net inflow of 603.74 million US dollars, marking a continuous inflow for 5 weeks, indicating institutional optimism towards the medium to long-term outlook.
• Key issuers performance: BlackRock’s iShares Bitcoin Trust attracted about 260.27 million US dollars in the week, accounting for nearly 43% of total inflows.
• Large buyer activity: In addition to Spot ETF, major companies are also opportunistically increasing their positions - some reports indicate that MicroStrategy spent about 13,390 BTC (equivalent to 130 million USD) this week to enhance its digital asset allocation.
• Inflow trend alert: Although funds continue to flow in, the volume has dropped significantly from the high point of over 3 billion US dollars in mid-April, reflecting a waning enthusiasm among investors.

Technical Points

Support and Resistance

• Key Support: Analysts consider $101,300 as a key support level for this round of rebound. Once this level is breached, it may accelerate the decline towards the $100,000 psychological barrier or even lower. .
• Key resistance: The range of $105,800–$106,500 is a short-term resistance zone, which has been touched multiple times and then fallen back. It is necessary to observe whether it can stabilize in this area.

Indicator signal

• MACD: The short-term and long-term lines are still in a dead cross state recently, with no significant fill-up yet, and the short-term bearish signal still exists.
• RSI and Emotions: The relative strength index is about 62, not yet entering the overbought zone, but has rebounded from the previous low, combined with a greed and fear index of 74 (greed zone), indicating that market sentiment is shifting from cautious to optimistic. .
• Volume: The daily trading volume has slightly increased compared to the previous day, indicating that both long and short parties are fiercely competing near the current price level.

Market sentiment and short-term risk

• Bull and bear struggle: CoinGlass data shows that the long-to-short ratio is close to 1:1, with slightly more short positions, reflecting the market’s lack of clear direction, which may intensify short-term fluctuations
• Funds differentiation: Some investors choose to build positions at low levels, while speculative funds may take advantage of fluctuations to profit from short-term differentials, causing prices to fluctuate.
• Event Risks: Pay attention to global macro news (such as the Fed interest rate decision, geopolitical tensions, etc.), as well as regulatory dynamics in crypto. Any negative news could trigger a pullback.

Beginner Investment Strategy

1. Enter the market in batches

- By using the DCA (Dollar Cost Averaging) strategy, the buying cost is spread across different price levels, reducing the time and price risks of one-time transactions.

1. Strict stop loss and take profit

- It is recommended to set the short-term stop loss within 3-5%, while the take profit can be set at 10-15% based on personal risk preference.

1. Secure asset storage

- Long-term holdings should be transferred to a cold wallet (hardware wallet) and enable multi-signature or 2FA to prevent security vulnerabilities in exchanges and hot wallets.

1. Continuous learning and tracking

- Regularly read market analysis reports, pay attention to changes in technical indicators and fund flows, and grasp the market rhythm.

Summary

On May 20, the price of Bitcoin continued to rise moderately, with institutions and ETF funds continuously injecting into the market, demonstrating the recognition of digital gold properties. However, technical indicators and the momentum of fund inflows have shown signs of fatigue compared to the high point in April, and short-term fluctuations still face risks of oscillation and pullback. Novice investors should balance medium- to long-term value with short-term volatility, consider both the fundamental and technical signals, proceed with caution in positioning, and manage risks well. Wishing you steady progress in the crypto market!