The first week of April was phenomenal for Bitcoin traders who managed to keep their spirits up since the early days of the year. There were no April Fools pranks on the cryptocurrency markets for 2019; nearly all major tokens enjoyed gains, and Bitcoin trading volume was particularly inspiring. Heading into the first weekend of the month, BTC/USD had already touched the $5,000 mark a couple of times, and volatility was mostly measured. April Fools turned into April Bulls, and technical analysts who thought a pullback towards $4,096 was imminent were ultimately disappointed.
With Bitcoin enjoying a 20 percent weekly gain in early April, market analysts returned to their favorite activity: forecasting a potential bull market that may result in BTC/USD close to $10,000. With exchange prices fluctuating within a $1,300 trading range, the reasons for the April spike were a bit of mystery, especially when taking into consideration that previous trading ranges were particularly tight. Pullbacks have been minimal, thus prompting some day traders to contemplate the prospect of taking long market positions instead of raking in quick profits.
Developments Affecting the Value of Bitcoin
There are a couple of fundamental developments to discuss in April; even though they may not be the strongest signals of a rally, they are still on the horizon. The first development is the number of active Bitcoin wallets, which has been climbing in recent weeks, a clear sign that the world’s most valuable cryptocurrency is still getting the attention of new investors. The second development is related to the BTC blockchain; Bitfury, a renowned provider of enterprise blockchain solutions, announced a new partnership with a medical data tech firm that seeks to improve the management of consent agreements issued by patients participating in clinical research studies. This partnership will run on a legacy Bitcoin blockchain, and this is unusual because most medical smart contract applications prefer the Ethereum blockchain.
Something else that should be discussed in the early March mini BTC rally is that $100 million were invested by three wallets across the major exchanges. Such a move is known as whale spotting, and it has the power to influence markets because smart traders are always on the lookout for these events. Such a large position is usually taken by institutional investors, and this may have been related to hopefuls signs that the Securities and Exchange Commission is seriously thinking about approving the first cryptocurrency exchange-traded fund. This is the reality of BTC/USD reaching $10,000 this year: if the SEC gives the green light to an ETF, this will likely trigger a rally.