Is $80,000 in Sight for Bitcoin? Outlook for April
April has historically been a strong month for Bitcoin performance. What can we expect this year, and are 50% gains still possible?
March has historically been a bad month for Bitcoin, but not this year. The leading cryptocurrency has gone from around $46,000 on 1st March to $59,000 today. The Bitcoin price is up almost 500% since its latest bull run began in October 2020. Looking into April, several different factors could boost Bitcoin even further.
Strong support around $53,000 limits downside risks
April is the end of the tax year in the U.K. and the U.S., which has historically been a positive for Bitcoin prices. Investors are finishing up old business and plan ahead. Historically, Bitcoin returned on average 51% in April. If history repeats, that could elevate Bitcoin prices to more than $80,000 by the end of the month.
What’s also favorable is that there seems to be strong Bitcoin support at around $53,000. According to IntoTheBlock’s Bitcoin financial indicators, a large cluster of addresses (677k) and volume (440.097k) had been bought around this price point. That suggests investors are looking to buy back when Bitcoin drops to this level.
Source: IntoTheBlock’s Bitcoin financial indicators
Further stability comes from the fact that there are more long-term investors (“hodlers”) in the market than ever before. On-chain indicators show that the number of addresses with a holding time of more than one year has increased by almost 3 million over the past twelve months. In total, 21.5 million addresses are now hodling Bitcoin, which is a record high and indicates strong investor confidence.
The bull market keeps going on
On the upside, Bitcoin is has been continuously scratching the $60,00-mark over recent weeks. Should Bitcoin break through the psychologically important pivot, it may head up to $70,000. Looking at on-chain indicators, about 9.5 million of the total Bitcoin circulation of 18.7 million has not been moved in over 12 months. That suggests investors still believe in the bull-trend.
Other bullish signals come from the real economy, where rising bond yields suggest increasing inflation fears. That could push more investors into crypto markets, seeking an alternative to cash or an alternative to gold as an inflation hedge. Also, the Nasdaq 100 fell by more than 3% in the last two weeks, and investors are fleeing tech stocks. Some of those tech-savvy investors might look at crypto as an alternative.
So see you at $80,000 on 30th April?
Historical price data is no guarantee for future returns. To be clear, we continue to be bullish, and we believe there is a good chance Bitcoin will take the $60,000-mark in April and head towards $70,000. But we have been in this market for long enough to know the double-edged sword of price volatility. Hedging our positions and protecting our investors’ wealth remains our priority.
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