Bitcoin is expected to close on the first “red” April in 6 years as Ethereum continues to hit all-time highs

189
SHARES
1.5k
VIEWS
ADVERTISEMENT


Bitcoin (BTC) may not worry analysts with its recent drop in prices, but it will likely close its first negative month of April in six years this week, despite hitting a new all-time high two weeks ago.

Data from the monitoring resource Bybt shows that April 2021, at -8.3%, is the worst April on Bitcoin’s history and the first to record a loss since 2015.

Related articles

A Bitcoin April like no other

The performance contrasts with that in March, a traditionally “bad month” for Bitcoin, which however increased by almost 30% this year.

Since the first quarter also saw an upward trend for three months in a row – which has not happened since 2013 – 2021 continues to oppose several BTC price trends.

Comparison of Bitcoin Monthly Returns. Source: Bybt

At the time of writing, less than two days through May, BTC / USD was trading at around $ 54,600 after briefly rising to $ 56,200 on rumors that Facebook bought Bitcoin in the first quarter. These rumors, even though they made it into the mainstream media, turned out to be unfounded.

As always, Bitcoin’s best-known names were completely unfazed by the lack of adoption miracle that emerged from Facebook’s first-quarter earnings report.

“If you sold Bitcoin because Facebook didn’t buy one in the first quarter and you also believe you are GMI, I have some unfortunate news for you,” Travis Kling, CEO of Crypto Asset Manager Ikigai, told Twitter followers.

Ether gains trigger “inverse correlation”

As Cointelegraph reported, the consensus among traders is building on Bitcoin continuing to cool after six months of epic uptrends.

During this time, which should last until autumn, the focus is on altcoins, which are already regaining the lion’s share of the market capitalization for cryptocurrencies.

Ether (ETH), the largest altcoin that hit new highs this week, is proving to be particularly uncorrelated with Bitcoin under current conditions.

“Not only are they not correlated, which would be a 0, they have also entered the realm of the inversely correlated,” said popular retailer Scott Melker, summarizing the results of his latest Wolf Den newsletter.

“It should be noted that the ETH / BTC has increased significantly due to the BTC decline.”

BTC / USD 1 day candles vs. ETH / USD (orange) (Bitstamp). Source: TradingView

However, towards Q4, Bitcoin should then wake up to continue its journey higher.