Forex Analysis & Reviews: 20.05.2025 - BTC/USD Analysis on May 20,...

InstaForex - Official partner of Dragon Racing

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex - Official partner of Dragon Racing

20.05.2025 11:11 AM

BTC/USD Analysis on May 20, 2025

The wave pattern on the 4-hour chart for BTC/USD has been becoming more complex in recent months. We observed a corrective downward structure, which completed its formation around the 75,000 level. This was followed by a fairly strong upward movement, which could mark the beginning of a new impulsive trend. The first wave of this trend section appears to be complete, but the second wave looks very small and entirely unconvincing.

The news background supports Bitcoin, though not always and not consistently. I would say that market participants themselves interpret any news in favor of the main cryptocurrency—or they simply pay no attention to the news at all. We are witnessing the formation of a new upward trend segment, driven by emotions, demand, and belief in Bitcoin's sky-high future valuation. One way or another, Donald Trump's tariffs and economic slowdown risks no longer scare crypto traders. Previously, such risks led to capital fleeing risky assets, but now Bitcoin serves as a "safe haven from Donald Trump's policies."

The BTC/USD rate has significantly risen in recent weeks, with demand increasing almost daily. However, if you try to correlate the current movement with the news background, you won't find a clear link. Certainly, nearly every day there are reports from all corners about institutional investors, large companies, and funds continuing to build up their Bitcoin reserves, which naturally increases the asset's value. Still, it's extremely difficult to pinpoint the exact cause. Most likely, there is no single, specific reason.

Yet there is news that could have brought Bitcoin's price back down to earth. Recently, it became known that hackers stole the data of nearly 200,000 clients of the cryptocurrency exchange Coinbase. The most intriguing part is that the company itself is striving to enter the S&P 500 index. This isn't some obscure exchange that might vanish tomorrow, but one of the largest exchanges in the world. How can we not recall that the head of Binance was convicted of fraud, FTX collapsed due to the same kind of fraudulent behavior by its founder, and other similar cases in the crypto world? Just recently, Bybit was robbed of $1.5 billion. Cases of fraud, data theft, and wallet asset theft are not uncommon. Certainly, such news does not deter investors from digital assets, but in the short term, Bitcoin could have declined in response.

However, that hasn't happened, and Bitcoin prices either soar or steadily crawl upward. In my view, this is an unhealthy situation because it is difficult to predict how much further market participants are willing to keep buying. One could turn to wave analysis for assistance, but as mentioned earlier, corrective waves are virtually absent. Meanwhile, Bitcoin is approaching the 110,000 level.

General Conclusions

Based on the BTC/USD analysis, I conclude that the formation of the downward trend segment has not yet completed, but Bitcoin is currently building an upward wave structure that could become a new trend. What troubles me most is the near-total absence of corrective waves, which severely hampers the wave analysis process. In other words, it's extremely difficult to determine what part of the trend the instrument is currently in. I'm not particularly fond of such movements. They may look attractive but are far riskier than movements that at least somewhat resemble classical wave structures.

On a higher wave scale, the upward segment of the trend is still under construction, but its internal wave structure is very ambiguous due to the almost complete lack of corrections.

Key Principles of My Analysis:

Wave structures should be simple and clear. Complex structures are hard to trade and often involve changes.
If you're not confident in what's happening in the market, it's better to stay out.
One can never have 100% certainty about the market direction. Don't forget about protective Stop Loss orders.

Wave analysis can be combined with other types of analysis and trading strategies.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.