Bitcoin’s price has come to a standstill. Unlike the frequent highs established over January and February, the crypto-asset has calmed down even as it was still up almost 500% since the beginning of the bull rally back in October 2020.
While the weekend anticipation a new record break did not transpire, Bitcoin did rise to $58,000 on the 29th of March. And even as concerns regarding a potential bubble burst lingered among the investors and the traders in the space, April could, in fact, offer a much-needed respite.
This is because, if history is taken into account, April has been the most bullish month for Bitcoin. In fact, the loss incurred by the crypto-asset is not new and has been in trend for quite some time now. It is this loss that is then followed by a rally in April.
Bitcoin At $80,000 By April 2021?
On a similar note, Danny Scott, the CEO of crypto exchange CoinCorner, was quoted saying,
“As with any month, the potential price prospects of bitcoin can be split into a number of different thought processes. Time of the year can be a factor and the month of April is always highlighted, as it’s the end of the U.K. and U.S. tax year.”
According to Scott, cumulative price data over the past decade shows a 51% average gain for Bitcoin in April. He also went on to explain that there have been only two instances when Bitcoin traded negative in April which were: in 2014 with -6% and 2015 at -4% respectively. To put things into perspective, the crypto-asset’s negative price action was tied with the following month of May with only two negative months, 2015 at -1% and 2018 at -18%.
Even Deribit’s data pointed out that despite the fact that BTC options for March have expired, the outlook is more bullish in April. It has an astonishing $2 billion in open interest [OI] and a 0.79 put/call ratio. Bets on Bitcoin’s price has been higher for the same month with a major chunk of market participants setting a strike price of $80,000 for BTC call options.
Published at Mon, 29 Mar 2021 17:30:00 +0000