Bitcoin Set for First Consecutive Weekly Gain of 2018

Bitcoin is set for its first consecutive bi-weekly gain in 2018. Bitcoin closed out on Friday, April 20, 2018, with a 4 percent increase in price setting the cryptocurrency up nicely to end another week on a high. 2018 so far has been a tumultuous year for Bitcoin as the price declined by more than 50 percent, even descending to below $6,000 in early February. Bitcoin had climbed to more than $19,000 by mid-December 2017, but a string of regulatory concerns led to a massive selloff which precipitated a drastic crash in the price of Bitcoin.

Spring Uprising

Many bullish Bitcoin predictions had reiterated the idea of a spring uprising for the cryptocurrency. The events of the last two weeks seem to conform to the mainstream narrative within the crypto community that Bitcoin would begin to rise in the second quarter of the year. The recent price increase within the last fortnight has brought Bitcoin up by almost 29 percent. The upswing isn’t only limited to Bitcoin as several altcoin prices are beginning to rise. Litecoin is up by 4 percent, Ethereum by 7.5 percent and ripple has gone by more than 19 percent.

U.S. Tax Filing Season is Over

The fact that the Bitcoin recovery is happening in the immediate aftermath of the end of U.S. tax filing season, proponents of the narrative that Bitcoin tax payments were a major player in the decline seems vindicated. With the IRS shining a particularly bright spotlight on crypto taxes this year, many have been forced to take drastic steps in ensuring that they don’t run afoul of the law. With the tax season finally over, some experts expect that the pressure to sell will reduce and the market can begin to recover.

The buy/sell signal which offers a perspective on the Bitcoin market mood also shows a significantly higher number of buy orders as against sell orders. In fact, the figures show that 90 percent of traders are buying Bitcoin while only 10 percent are selling. This is the first time that the figures have been in such a proportion in over a year. The figures indicate an increase in demand for Bitcoin and this has always traditionally driven up the prices.

The Bulls Gear up

Tom Lee of Fundstrat predicted a midyear Bitcoin price of $20,000 and an end of year price of $25,000. With the market seemingly in recovery mode, it appears the bulls are gearing up for a big push. In recent years, April has been the traditional entry month for Wall Street firms into the crypto market. The influx of institutional investments via large hedge funds is bound to have a positive impact on Bitcoin prices.

According to John Spallanzani, all signs point towards a period of positive price growth for Bitcoin. He said that with the tax season over, hedge funds with “deep pockets” are getting into the arena. He also stated his optimism that Bitcoin will reach even higher prices than previously recorded. John Spallanzani is one of the portfolio managers at Miller Value Partners LLC, an investment firm.

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