- Bitcoin’s price action which too late has done much to offer investors some concrete insight into where it may develop next
- Analysts have largely noted that the cryptocurrency’s prospects are dampened by stock market turbulence, which could last until the election.
- Many retailers believe that the rest of the 4. quarter will be a bullish month for BTC as it may be when it can decouple from the stock market and gain some independent momentum
- An analyst explained that he believes the downside is imminent in the coming quarter, noting that whales will have to pay out some of their crypto to cover taxes, which could trigger a sale
Bitcoin and the entire crypto market have been lacking momentum over the last few days and weeks.
This has largely happened due to the turbulence in the stock market, where bulls and bears are not able to trigger short-term trends when the stock market is consolidated.
This side-trade pattern may not last too long. An analyst noted that BTC may see whales selling their cryptocurrencies to cover taxes.
He notes that this mood is reflected while looking at options makers.
Bitcoin lacks momentum as the stock market continues to consolidate
The stock market has not been able to form any clear trend of late, with investors largely awaiting more insight into a Phase 2 stimulus package not yet agreed by Congress and the White House.
As the election also approaches, investors are potentially awaiting the results before opening new positions.
This has caused Bitcoin to see a similar battle with poor price action. Both bulls and bears have largely reached a dead end and have not been able to trigger any short-term trend.
At the time of writing, Bitcoin is trading marginally up to the current price of $ 1
Analyst: BTC is likely to see tax-induced Selloff later in Q4
An analyst offered a bearish outlook for Bitcoin and the crypto market in the 4th quarter, noting that he expects it to see a sale triggered by whales taking money out to cover taxes.
“It’s hard for me to imagine a Q4 pump mega. All whales that sell to prepare for tax. Unless you tell me that the majority of the crypto is in tax havens like SG and HK. Emotions are shared between makers who market options that price monthly IV at 30% +, ”he explained.
Image Courtesy of Theta Seek.
If the choices that makers turn out to be correct can be a turbulent coming few months for Bitcoin.
Featured image from Unsplash. Charts from TradingView.