Why cannot bitcoin gain a foothold?

Bitcoin is declining again. How deep it will plunge, let’s try to forecast. Last week bitcoin showed a good rise. Starting the week lower $7,000 it surged to $8,500 on Sunday.

The unsteady rise of bitcoin last week was caused by several reasons. First of all, such famous families as Soros, Rockefeller, and Rothschild plan to invest in bitcoin. Secondly, news on the legalization of bitcoin in the Muslim countries opened the market for a big number of investors. However, even those events could not support the cryptocurrency and on Monday bitcoin has fallen below $8,000.

Why cannot bitcoin gain a foothold?

The fall of the digital currency between the end of March - the beginning of April can be related to the tax season in the US. According to the estimation of Tom Lee (a co-founder and head of research at Fundstrat Global Advisor), American traders have to pay about $25 billion taxes for cryptocurrency operations. That is why a lot of traders sold their bitcoin assets to lower taxes. Tom Lee predicts that the cryptocurrency will reach the bottom after April 17 the last day of the filling of return.

Let’s look at the chart. The first support lies at $7,700. If bitcoin breaks it, the 200-hours Moving Average will be the next level of the support at $7,550.

However, do not be upset. According to the Tom Lee forecast, bitcoin is supposed to reach the level of $25,000 by the end of the year. So traders, be calm and hodl.

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