February started on top gear as various cryptocurrencies, including Bitcoin, recorded a new all-time high. Using the BTC monthly heatmap, it was almost easy to tell that February is usually a good month for cryptocurrency.
Coming off the back of a bullish month though, Bitcoin tends to struggle and is already showing such signs in the buildup to March 2021. Historically, bitcoin loses an average of 0.3% of its value in March.
During the first decade of its existence as an asset, it was only in three March months that Bitcoin yielded positive returns.
The remaining seven months of March are negative, with Bitcoin losing not less than 2.7% in the least bearish year (2015).
The worst month on record is one that you probably remember vividly, the COVID-19 led sell-off across financial markets in March 2020.
On March 11, bitcoin lost 28% of its worth in one day due to the strong sell it experienced. Before this strong sell, bitcoin got to a high of $11,660 earlier that month before spiraling into a steep decline to the $4200 zone. Bitcoin subsequently closed the month a little above $6k.
Apart from the bearish aura that surrounds March, studying various price movements suggests that the cryptocurrency often kicks off the month strongly before losing out to bears.
If this pattern holds true, and Bitcoin closes February above $48k or above, then it may get as high as $50k in March before the bears attempt an attack. A strong swing in market sentiment may alter this prediction.
On the monthly chart, BTC is trading way above the $34,315 pivot point. After breaking various resistance recently, it will take more bearish whales to make bitcoin dip below the crucial support around $28,000.
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