Bitcoin Monthly Forecast – April 2018

The BTC prices have been having a tough time since the beginning of the year and the investors and the traders in this market would be happy that the quarter had ended. It is a quarter in which the prices of the instrument dropped by around 50% and to think that the prices have dropped from the highs close to the $20,000 region towards the end of lasy year to trade below the $7000 region to close the month of March should be something that is quite disappointing for the bulls.

Bitcoin Prices Continue Lower

The bulls have been finding the going pretty tough over the last few weeks as there has not been much demand with the regulators all around the world beginning to step in to control the market. One of the main reasons for the volatility and the liquidity in the BTC market was the presence of the speculators who were trading and looking for some quick returns but with the advent of the regulators and taxation in many parts of the world, we are seeing the speculators beginning to leave the markets and that has reduced the demand.

This reduction is demand is leading to lower and lower prices. Also the introduction of BTC futures in many parts of the world is also causing the traders to sell off the BTC and this is only adding to the pressure on the prices. Also, in March, we saw that it was the season of taxation in many countries and with BTC also coming under the tax ambit in many of the countries, there was a reluctance to buy the BTC at this point of time.

There is Still Some Hope for the Bulls

Now that the tax month is over in many countries, the bulls would be hoping that the liquidity would come back and the investors and the traders would be encouraged more to buy the BTC in the coming month of April. I has also to be noted that the prices of BTC ended the month of March 2017 near the $1200 region and we all know where the prices ended the year at. Hence, it would not be a surprise if we see a bullish move in the BTC market in the upcoming month though the challenges continue to remain.

One of the challenges is the continued crackdown by the regulators on the crypto markets and also on the exchanges and the ICOs in particular and this is likely to spook the new investors and traders. Also, it is likely that the traders who bought the BTC at the high levels are caught out and they are unable to get out due to the lower prices now. They do not want to lose their funds and hence are holding on in the hope that the prices would recover back to their highs so that they can get out. It is for reasons like these that the traders have been out of the market and the entire thing acts like a cycle making it very difficult for the bulls to generate any sort of momentum in the short term.

In the upcoming month of April, we believe that it would be a bullish month and it just need a strong bullish leg for the bulls to be able to draw in the other traders in the move higher. The technical selling levels are at the $7400 region and then the $7800 region but once these 2 levels have been crossed, we should see more and more traders gain confidence in the move and this should lead the prices to gain in pace as the trend would then begin to snowball. We do not foresee the prices falling by too much in the upcoming month.