Events triggered by the COVID-19 pandemic have seen March become one of the toughest months for the world. In financial terms, it has seen industries plummet, breaking decade long records. Bitcoin on its part has lost around 25% of its value, dropping from $8,600 to its current $6,400 level.
Can Bitcoin regain this profit in the new month? A look at the events from last year shows that on April 1st, Bitcoin gained over $1,000 in a single day. Can history repeat?
Bitcoin was around this time last year trading in the $3,500 lows, a level it had spent a long time around after bottoming at $3,000 in 2018. Bitcoin’s gains after April 01, would extend in the long term to see it top at $13,000 in June.
Some investors will look at this and think the same can be repeated. However, this is very unlikely. The circumstances are quite different starting with the reason that triggered Bitcoin last year. The move last year was a technical one, although some have also suggested the move on April fools was triggered by a joke.
Additionally, the financial world now looks very different from back then. Currently, there is FUD driven by the COVID-19 pandemic. While this goes on, no one can with certainty predict where prices will go.
Bullish Scenario Still Feasible
One bullish scenario that shows promise of a rally is the Bitcoin halving expected in May. This is a hugely bullish event. Leading up to it, we expect investors to start buying and holding which will push prices up. Post halving, supply will be cut in half which could further boost Bitcoin price.
Already the market is looking positive and starting yesterday Bitcoin has been in the green zone. At the time of writing this, the digital asset is struggling to climb above $6,500 which will set it up for further gains to the $6,800 resistance and ultimately $7K.
Last year’s three-month action starting in April proved that Bitcoin can easily go full-blown bullish in a matter of days and go on to break its own record by a mile. Whether it does again this April, we eagerly wait to see.