Bitcoin BTC started 2021 strongly, but its momentum was stopped slightly this month in March.
According to some crypto market analysts, this trend is likely to reverse by April.
Historically, Bitcoin has performed well since its inception in April, except for two occasions, when the cryptocurrency failed to gain ground.
Danny Scott, CEO of cryptocurrency trading platform CoinCorner, said:
There have only been two negative months for April since Bitcoin’s inception, in April 2014 Bitcoin fell -6% and April 2015 fell -4%.
So there might be some momentum coming.
April coincides with the tax year in the United Kingdom and the United States, which is an important factor, as Bitcoin has performed historically well during these time periods.
Scott commented about that by saying:
There could be an important factor affecting Bitcoin in April, perhaps because it is the end of the tax year in the United Kingdom and the United States.
According to an analysis of price data over the past 10 years, Bitcoin gained an average of 51% in April.
If this materializes next month, then Bitcoin may expire in April 2021 with prices increasing to nearly $ 80,000.
What could drive bitcoin’s price up in the next month?
Scott answers this question by saying:
What could lead to a bitcoin price increase in the next month is that market sentiment is currently very bullish for cryptocurrencies.
This is given the institutional demand on the crypto arena from Tesla, Twitter and many institutions around the world that support Bitcoin.
At the moment we are in a bullish period with steady momentum building every week.
US incentive checks and bitcoin investments:
Additionally, as the third round of stimulus checks begins to provide coronavirus relief to US citizens, the bitcoin price is likely to rise.
Previously, many Americans were reported to have set aside part of their incentive checks to buy bitcoin, in an effort to hedge against inflation and secure their wealth.
This trend is expected to repeat itself for the third round of stimulus checks, as eligible Americans will receive $ 1,400 checks as part of Joe Biden’s $ 1.9 trillion stimulus package.
Robert Gottman, chief executive of the New York Digital Investment Group (NYDIG), revealed that state-owned investment funds were also looking at Bitcoin investing.
As individual and institutional investors turn their eyes to Bitcoin, market sentiment about cryptocurrencies remains positive, and many are expecting BTC to rise higher.
Currently, Bitcoin is trading at around $ 56,169, according to “CoinMarketCap”.