PayPals recent announcement that US customers would be able to use their cryptocurrency reserves to pay at millions of its online retailers worldwide, made the bitcoin price continue it’s ascend and growth, topping $59,000 for the first time since March 21.
According to Danny Scott, who is the chief executive of the Isle of Man-based bitcoin and cryptocurrency exchange CoinCorner, notes the fact that exchange balances are declining is a bullish sign that Bitcoin could reach a new all-time high.
Presently, with historical bitcoin price analysis which is indicating towards March losses are usually followed by an April rally, bitcoin traders and investors are feeling upbeat.
“As with any month, the potential price prospects of bitcoin can be split into a number of different thought processes,” says Danny Scott via twitter
“Time of the year can be a factor and the month of April is always highlighted, as it’s the end of the U.K. and U.S. tax year,” Scott says, adding that “taking history into account, it very well may stack up.”
Update.
April #Bitcoin price target is now $88,966 IF law of averages plays out. https://t.co/7PHUbt3v5t
— Danny Scott (@CoinCornerDanny) April 1, 2021
According to Scott, a ten-year analysis of price data shows a 51 percent average increase for bitcoin in April. If this holds true, bitcoin will end the year at just over $80,000 in April 2021.
Historical data reveals that Bitcoin has averaged about 51% gains in April over the past 10 years.
“There have only been two negative Aprils since bitcoin began—in 2014 (-6%) and 2015 (-4%)—which is tied coincidentally with the following month of May with only two negative months—2015 (-1%) and 2018 (-18%)—so maybe there is some momentum and truth from this.”
These negative Aprils and Mays happened during bitcoin bear markets, according to Scott, and “current business sentiment” should be taken into account.
Presently we are in a blue period where the momentum is building steadily and catching it’s pace. Scott points out to high-profile billionaires like Tesla’s Elon Musk and Twitter’s Jack Dorsey offering bitcoin their backing, Wall Street giants rolling out bitcoin services, and countries across the world continuing to surge the system with freshly-printed cash.
Bitcoin lost momentum after touching an all-time high of $61,711.87 on March 13th. It has partly recovered in the four days since, according to CoinGecko it is currently trading at $59,025.57.
