Bitcoin and its momentum
Bitcoin was facing tough times since the beginning of the calendar year 2018, and the investors were sweating what will happen next in the coming months. After the ups and downs faced by Bitcoin in the past three months, investors have started losing interest in investing their funds.
After the end of the quarter, Bitcoin has seen a drop of 50% in the market cap. But after the tax month is over, there is still some hope to see the bullish trend in the Bitcoin market, and the gone liquidity will come back, and investors will be encouraged to buy Bitcoin in April.
Bitcoin and the month of April 2018
The last three months was a disaster for Bitcoin, but April was marked as one of the best months of the year 2018 for the Bitcoin market.
Bitcoin showed a 33% rise in price, but it was yet to recover the $10000 mark, which was affected in the previous month.
Though the bulls were in favor of Bitcoin in April 2018, it didn’t mean that investors should plunge only by seeing the charts of April.
Analysis
The Bitcoin was quiet in the last three months, with no progress in price, and showed the bearish trend since the year 2018 is started. The Bitcoin was able to gain the confidence of investors and traders when the price went up by $800 in less than one hour, which is approximately an 11% increase.
The start was slow, but gradually it increased momentum and showed a rise from the $6000 price group to $7000 price group.
In the end, the price shoots up quickly from $7000 price group to $9000 price in no time. But it had still to achieve the $10000, which was not seen as a problem after seeing the April charts.
Comparing with some of the strong currencies of the world
BTC/USD
Bitcoin was celebrated in April, showing 33% up against US dollars. There was a lot of commotion at the $9000 level on the short-term charts, and it was believed that the market might stretch out to the $10,000 handle. It is a result of this that it would envision some setback, but $8000 could offer a bit of help to achieve this price group seeing the market scenario. Buying it slowly seems the ideal approach to trade in this market if you are a longer-term investor. However, most traders are not looking to be in a hurry to develop their strategy for Bitcoin investment. If that is the situation, Bitcoin isn’t something you need to get on, as the altcoins are beginning to show signs of life again, and they tend to increase their pace. In any case, if Bitcoin can break over the $10,000 level, it’s probably going to keep going higher.
BTC/JPY
Bitcoin has shown robust recovery against the Japanese yen in April in comparison to the previous month, breaking over the ¥900,000 level. It was a great sign, but still, there is a lot of resistance near to the ¥1 million level, extending out to the ¥1.25 million level. It was imagined that it’s just a short time before the traders adopt plunge strategy, but to turn around and break down the 850,000 level, it needs to loosen up a bit. Previously there was a significant “floor” in the market close to the ¥700,000 level, and the charts showed that it would attempt to keep on going higher, but it will take a lot more of momentum to break out and reach a higher level. The Japanese yen lost some value during the exchanging session in the Forex world, so it will continue to build some pressure on the traders in relation to whether to invest right now or wait a bit longer.
Bitcoin price and mid-cap at the beginning and end of April 2018
On April 1, the price of BTC was open at $6943 and closed $6835, recorded low at $6463, and high $7056.
It managed to touch a $7000 price group on the first day but again fall back to $6000 price group.
Around 16 billion Bitcoin were in circulation out of 21 billion during April 2018.
Bitcoin hit 33% up for the whole April 2018 month against the US dollar, making it the best month of 2018.
Therefore it has yet to achieve the $10000, which was not a big task seeing the growth chart.
The market cap of Bitcoin at the beginning of April was about 110 billion to 130 billion when traded between the price ranges of $7000 to $8000.
About 18000 contracts traded on April 25, 2018
The Bitcoin rise by $1000 in just one day
At the end of the month, i.e., April 30, 2018, Bitcoin closed at $9248.
At the end of April, the market cap was around 140 billion to 150 billion.
Significant events that lead to price increases or decreases during April 2018
There were many such events, both good and bad, that at once turned the tables around. So let’s discuss the main factors that led to both increase and decrease in the price for Bitcoin during April 2018.
Factors that influence the rise in the price of Bitcoin during April 2018
1. The News published related to Bitcoin is completely compliant with the Sharia law led to an increase in price.
2. The second reason was when Winklevoss twins won a crypto patent. This was the primary reason for the shoot of the price on April 12, 2018.
3. One of the reasons that many traders claimed was because of the ending of the US tax session.
4. The News even came that the wealthiest man George Soros may start trading cryptocurrency.
Factors that lead to a decrease in the price of Bitcoin in April 2018
1. The News related to George Soros was not good news as if he decided to sell a large amount in one go, then it can cause significant ups and downs in the crypto market.
2. A post came saying that Canadian bank was banning customers from buying cryptocurrency.
Conclusion
The start of April was low, but it rose like a Phoenix and showed some of the high highs of the year 2018. It was the confidence of a trader that took the Bitcoin this far. Otherwise, Bitcoin was history. Many say Bitcoin is robust to predict, and the month of April proved it’s true.