A Post-Tax Day Rally For Bitcoin? - Forex News by FX Leaders
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A Post-Tax Day Rally For Bitcoin?

Posted Wednesday, April 17, 2019 by
Shain Vernier • 1 min read

Historically, April has brought positive action to Bitcoin (BTC). Values have shown a tendency to spike during the year’s fourth month and are already in the green by more than 25% since April 1. Are we in for more upside heat or is BTC preparing to fall back beneath $5000?

April Is A Great Month For Bitcoin (BTC)

Since 2012, BTC has gained marketshare in April five out of seven times. The largest rally came in 2013, with values skyrocketing 45%. 2018 brought 33% gains for April, with the action being dubbed the “post-tax day rally.” Given the recent bullish consolidation near $5000, one has to wonder if BTC is gearing up for a springtime run at $6000 or $7000.

April Bitcoin Futures (BTC), Daily Chart
April Bitcoin Futures (BTC), Daily Chart

Here are the technical levels to watch for April BTC futures:

  • Resistance(1): Spike High, $5480
  • Support(1): Psyche Level, $5000
  • Support(2): 38% Retracement, $4760

Overview: From a technical standpoint, BTC remains in bullish territory. Until we see sustained trade beneath $5000, one is well advised to maintain an intermediate-term bullish bias toward this market.

On a side note, Monday, April 15 marked the passing of U.S. Tax Day 2019. For the second straight year, there has been a considerable buzz surrounding the tax status of cryptocurrencies and potential problems for investors. As of yet, there have been no high-profile busts or prosecutions due to U.S. tax code violations. This fact has given crypto players a bit of reassurance and it has been “business as usual” in the cryptosphere.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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