Bitcoin Drops to $45K Support as Analysts Point Out Seasonally Bullish April Month Ahead
According to one analyst, a psychological phenomena associated with the start of spring may drive bitcoin values to rise in April.
Bitcoin quickly fell below $45,000 before rebounding as it goes into a generally bullish April, a month that has seen the asset advance in seven of the last ten years, according to statistics.
In a Telegram message, Asaf Naim, CEO of bitcoin development startup Kirobo, said, “No one knows for sure what the explanation for the usual ‘April’s Bull.” “Some believe it’s a psychological phenomenon associated with the arrival of spring.”
“After the bullish trend of mid-January until the end of February (that includes the aftermath of Christmas and the Chinese New Year) comes to a downturn, which later changes to a bull run in early April,”
After reaching a two-month high of $48,000 on Wednesday, BTC fell to $44,200 on Thursday night. Traders, on the other hand, bid up bitcoin to a support level of $45,000. Bitcoin might fall below $43,400 if present levels are lost over the weekend.
On Monday, the 5-year and 30-year US Treasury yield curves inverted for the first time since 2006, raising worries of a recession. According to observers, yield curve inversions — the selling of short-dated treasury bonds in exchange for longer-dated bonds – occur prior to recessions as traders wager on fears about the economy’s health.
Nonetheless, other experts believe that a typically bullish April, along with favorable growth in broader markets, might see bitcoin recover and move upward in the coming months.
Alex Kuptsikevich, senior financial analyst at FxPro, said:
“It should be mentioned that April is also a strong month for stock markets. The new month begins with optimism and the mood to look for a moment to buy on a decline, especially given the dense influence of institutional sentiment on the dynamics of bitcoin.”
Some traders believe the flagship cryptocurrency will reach a short-term objective of $53,000 in the next months. Long-term goals are considerably loftier: In a recent paper, strategists at institutional fund VanEck predicted that if bitcoin becomes the global reserve asset, each BTC might be valued up to $4.8 million. The hypothesis assumes that central banks would diversify their reserves and start allocating to cryptocurrencies.
Meanwhile, according to Kirobo’s Naim, BTC was likely propped higher in March 2022 by demand from Russian merchants.
The link between the price of BTC and the price of the ruble cannot be overlooked “Naim expressed his thoughts. “Many Russians turned to bitcoin as a way to protect their assets, and they bought bitcoin (and other tokens) in large quantities.”
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