Bitcoin Forum

Bitcoin Price Rebounds After Tax season

On Saturday, the Bitcoin price again reached the 9000 U.S. dollars mark. Tom Lee, the major analyst of Fundstar Global Advisors, was not surprised by this fact. In his opinion,  the negative impact on Bitcoin price was caused by the U.S tax season.
Read the full article here: https://www.xmlgold.eu/en/news/article/664/Bitcoin-price-review/ (https://www.xmlgold.eu/en/news/article/664/Bitcoin-price-review/)

I always thought that the main holders,and therefore movers of crypto prices, were Asians. Any good news for cryptos is welcome.

Yes,,that's right...Bitcoin finally came back after three months later almost lost the value to 48 percent...probably because more news about companies participating in the crypto market, bitcoin valuations will continue to increase steadily...and then There has been a shift in sentiment towards cryptocurrency in a more positive direction, marked by Bitcoin's soaring price compared to last week,..This indicates that a large investment has begun to see the clarity and flow of money in digital currency transaction services...

After three months the bitcoin price is increasing, it makes many investors who invest in bitcoin. There are some positive news coming about bitcoin. Hereafter the bitcoin values is increasing day by day. So if you have funds just invest in bitcoin and save the bitcoin for future. In future the price will touch the moon. Like last year this year also the price of bitcoin will be break the record.

I really think that the U.S. Tax day really affected the price, since most investors and whales that are residing in U.S. would also like to avoid paying high amount of tax based on their crypto holding and income. The price starting recover when the tax day was over which was speculated by a lot of people.

Since USA is a major player in the world economy and USA also have many people investing in bitcoin so any negative decision of USA government towards cryptocurrency will directly affect the price. We have gotten so many goods news that is strong enough to propel the price upward. Today's red is just momentary. 

I agreed with your statement, USA is considered as a bitcoin place were is bitcoin begun. So, if the USA will having an issue regarding bitcoin it has a really big impact on the market, we consider at that place they having more investors in bitcoin.
The USA is the widest investors in bitcoin we will not surprise for that matter, at this country may lead to the asian countries that now adopting bitcoin.

Taxes are a decent explanation, but how would you explain the price drops in January and February. These months are always bringing some new lows to cryptocurrencies. If the tax year ends in April, there shouldn't be such significant movements 2 or 3 months earlier. If we explain this recent pump with taxes then we should also explain the recurring drop with this same thing.

Definitely, the fully adaptation of many establishments and company are really help to the progress of bitcoin system. They will bring the positive things to btc therefore it affect to the movement of it's value in the market. The continuously soaring high of btc value maybe because day after day there will be an increasing adaptation happened. Even if there are negative news spreading worldwide regarding to crypto scamming there are some establishments and a huge of people that still believe and supporting to bitcoin system that's the reason why the negativity will turn in positive things.   

I expected that 10K was a strong barier for bitcoin and it could not go this barier at once.
Now we need to wait some days to see what will happens to make a financial decision.

What establishment adoption you are saying? While I don't see any news about big adoption coming with bitcoins, But as the matter of fact the truth behind this is the regaining back the trust of the panic sellers and whales since they don't see any major upset came with bitcoins. And although the dumping of bitcoins continuously occuring well we shouldn't worry about this since there are huge jump will came and that's for sure.

I think there's much more to the reversal than just the end of tax season, it surely contributed in some part. I think a large part was that there was shown to be strong resistance around 6k with little appetite to push the price lower. The few weeks we spent there were enough for people to become confident a bottom had been found.

waaw ,, this is good news. after a crisis for several months yesterday, bitcoin will repeat its achievements at a high price. I am very enthusiastic to hear such news, hopefully this is the beginning of the reoccurrence of bitcoin glory ..

this is making everybody happy. hopefully this rise will continue moving forward. i am expecting this rise, it very much expected.

Yes, I also think that the $10K mark is much tougher to get because right now it looks like the price is on a minor correction. Not just bitcoin but the whole crypto itself. Maybe $9500 is too much for most traders that's why one way or another day trader sell a few but strong hands stays and not deterred by this correction.

As far as Tax Season, I still don't get the correlation or the effect on the market price. Does it mean that investors doesn't want to pay more taxes?  Maybe its has an effect but not that significant to really move the price from the last bottom to $9500-$9700. There might be a lot of factors that causes the price to increase and Tax season maybe just one of them.

when in the united states the tax season occurs so bitcoin prices tend to experience negative impact and go down. But I think we should continue to hold our bitcoins and not be affected by the bitcoin price reduction itself. Because the next 3 months I believe bitcoin prices will continue to rise by itself we need to be patient

So it really means that is true that the bitcoins value which is moving upward are effects of U.S tax? Well, it is good to know that U.S is really has a bulk of contribution to the fully recovery of bitcoin. Thus, for now I can already proves that the huge number of people that demand to btc are really help the system to overcome the difficulties that it's been encountered. However, as of know we can do see that bitcoin is steady moving up or rising up in the market so we are safe as of now from downfall.

In my opinion the tax season will cause bitcoin in a bad way because it was the only one currency which was free from government intervention and and it was free from tax liability. Bitcoin is very good to hold and the prices is increases in these days again the bitcoin will hit 20k soon and if US give a good feed back about bitcoin movement now a days and if the business developed this money for transaction then it will also increase.

right. we must strengthen mental to keep hold of bitcoin. because now there are already developments where market has started to green. so i think also holding btc is the right solution. because i think btc is not able to break support at $ 6000

Your reviews and predictions are wrong; the market does not go up according to your expectations. It went down very quickly in the next few days, and it fell more than 10% over the price of the same time yesterday, maybe this is the impact of hacker attacks and 24k ETH.

Every good news is happy. I think it's not just American investors who are driving the price of bitcoin, because it's fragmented, and its price is controlled by market demand.

I don't think that USA tax season made such an impact on BTC to make it "loose" 45% of value.
I am using commas because BTC never lost any of its value. If you look at the charts as you should be looking and analyzing the price trend from month to month we will see that BTC is in a continuous uptrend. We should ignore the 19000$ price that it reached because that was not a real price being done by a large scale pump. That price wasn`t a natural obtained price and should not be taken as a reference price.
When analyzing the charts we should ignore the pump period and we will see that all the markers are green for crypto investment.

I think he has also a point. Maybe, if the country has a large population of investors or they have the biggest whales then they will really affect the price of bitcoin. Since America is a big country with lots of big investors they do affect the price of bitcoin.

Well if majority of american's sell of their bitcoins then maybe they can really affect the market but if they are some of them just selling of due to unknown reason then its really bit sketchy to tell that they can since as I know major players doesn't give a shit on short term fuds since they surely all know that bitcoins would ever climb up again. But if USA.China and other huge country combine then maybe we can say that it is truly contribute to the dump coming.

But after 4 days of resistance today drops lower than $9,000 again and denial begins to take over..

I am waiting for this GREAT ANALYSTS to make good explanation about this preview.

Is this another pump and dump strategies of the whales?or is there another issue that comes out

Even then the growth is nothing when compared to last year. If you see the prices now, it is again in red for last 24 hours which is even more surprising.

There has not been 4 days of resistance, it was about half a day at best, the price approached 10k and then a lot of people took profits, then some panic set in and we saw the 10-15% fall. We reached some support and now the price will start climbing again. Probably 10k won't be broken on the 2nd time round, normally it's the 3rd time of asking.

No doubt that Asian holds most of the bitcoin but they have no impact on price. I think that it is the trend of the people which cause for the price changes. If we observe the price in the last few months there is lot of up and down. Different people have different thoughts about bitcoin price rise and fall, but the most powerful reason is interest of the people.

It should not be happen. Why US tax season effect bitcoin price? It is not their local currency and not they are mining all the stock of bitcoin. I strongly condemn it. One country should never have any impact on bitcoin price. Investment ratio can change the price. When investment increases the price grows and when people withdraw their money the price falls.

The Mt.gox trustee was started to panic sell when it started to bites the ATH last quarter of the year don't believe that it is a panic sell though, it is the fault of the mix events and news lately, market corrections, Fuds due to the advertisement bans throughout the famous platforms and the tax season this April that's why it got pretty beat up, recovery takes it time to break the resistance of 10k USD as it is fluctuates around 9k USD.

This is a silly reason. The price might have spent a short amount of time at the ATH, but it spent weeks around it on the way up and down. In that time period, there were thousands, if not millions, of transactions that took place of people ratifying the price level and the valuation. You cannot write it off because it interferes with your thesis. The fact remains that the price suffered a 60+ percent drop because it was a bubble that was unsupportable, not because it was a 'fake price.' The price was very real to every person who bought or sold at those levels, and it continues to be down significantly from there.

Well, according to this logic we should have a good dump now. Bitcoin holders shouldn't be taxed for holding crypto. Income tax is usually taken after selling your coins as a % of your benefit from holding crypto. At least this is how it is supposed to be. So it seems like people should cash out now if they didn't want to be charged at the previous year.
All those forecasts are absolute bullsit. People are pointing on the correlation between BTC price changes and tax year, bangladesh interest rate changes, penguin season migration etc. But no one was bothered enough to prove that this correlation really exist. If Tom Lee says that this somehow influenced the BTC price then I expect him at least to make a survey among the US crypto holders asking them why they bought / sold their coins and when.

The Mt. Gox trustee was not panic selling because he doesn't have the discretion to panic sell. He's simply following the orders of the court, and the court sets the instructions on how much the trustee is allowed to sell. Price at any particular point has less to do with it than you think because the trustee doesn't set the price parameters or the time parameters, he is only authorized to liquidate holdings to the point he can satisfy the debt obligations he has been authorized to meet, and has to do so within a reasonable or strictly set amount of time. So price probably factors very little into the decision to sell.

No, this logic supports the price rise and doesn't indicate a dump is coming at all. Crypto doesn't work like normal investments, you have to pay tax on every "taxable event," not only capital gains when you sell. A taxable event is every time you exchange one coin for another, so if you buy Bitcoin and convert to XRP, that's a taxable event. You're liable for the taxes immediately, not when you sell the XRP. When you convert XRP back to BTC, that's another taxable event, and then another when you sell BTC back to fiat. So if you were trading a bunch of alts, you owe taxes before you convert to fiat, which is why (the theory goes) people needed to cash out crypto holdings to have enough money available to pay their tax bills. I don't necessarily buy the thesis, but I can say that you look foolish for criticizing an idea you didn't even understand.

The correlation supports the claim, it is not the cause of it.