Bitcoin May Plunge in Q4 Due to Some Tax-Induced Selling Frenzy
This sideways trading pattern may not last for too much longer. One analyst noted that BTC might see a selloff triggered by whales selling their crypto to pay taxes.
Charts from TradingView.
Bitcoin Lacks Momentum as Stock Market Continues Consolidating
He notes that this opinion has been reflected while looking towards options market makers.
“Its hard to for me to envision a Q4 pump mega. All whales selling so as to prep to tax. Unless you’re telling me that nearly all crypto are in tax havens like SG and HK. Sentiments shared amongst options market makers that are pricing monthly IV at 30%+,” he explained.
If the options market makers prove to be correct, then it could be a tumultuous coming few months for Bitcoin.
This has caused Bitcoin to see a similar bout of lackluster price action.
- Bitcoin’s price action as of late has done little to provide investors with any tangible insights into where it may trend next
- Advisors have been largely noting that the cryptocurrency’s outlook has been dimmed by turbulence inside the Stock Exchange, which may persist until after the elections
- Many traders do believe that the remainder of Q4 will be a bullish month for BTC, as this may be when it can decouple in the Stock Exchange and garner some independent momentum
- One analyst explained that he believes downside is imminent in the quarter ahead, noting that whales will have to cash out some of their crypto to pay taxation, which could spark a selloff
This has largely come about because of the turbulence inside the stock market, with bulls and bears being unable to spark any short-term trends as the stock market consolidates.
1 analyst provided a bearish outlook on Bitcoin and the crypto market in Q4, noting that he expects it to see a selloff triggered by whales taking out money to pay taxes.
Released at Sat, 17 October 2020 16:00:32 +0000
Bitcoin and the whole crypto marketplace have lacked momentum during the last few days and weeks.
The stock market hasn’t managed to form any clear trend as of late, with investors broadly awaiting more insights into a phase 2 stimulus package that has not yet been agreed upon by Congress and the White House.
This is around the cost where it’s been trading during the past week.
As the election also draws closer, investors are possibly awaiting its results before opening fresh positions.
Featured picture from Unsplash.