Can We Expect A Bullish February For Bitcoin?
2022-02-16 16:15:10
Historical figures show that January is conversely often a “green” month for Bitcoin — 2021, for example, delivered gains of more than 21%. However, this tradition apparently failed to apply in January 2022. Data from on-chain analytics resource Coinglass shows this January to be the least profitable since the peak of Bitcoin’s last halving cycle.
The lowest price of Bitcoin in January occurred on 24th, it dipped to $32944.17 which is 28% lower than the opening price ($46215.50) of 2022, according to Gate.io, a leading crypto exchange for trading Bitcoin. Fortunately, the Bitcoin price returned at over $38,000 on the last day of January as selling pressure is apparently wearing off.
Bitcoin has staged a remarkable recovery at the start of February, rising in price by nearly $10,000 since the beginning of the month. The latest gains in last Friday have taken the cryptocurrency back above $45,000 and appears to have reversed the bearish trend. So, which February 2022 may be for Bitcoin, continue bullish or restart bearish?
Bitcoin Price Analysis for February 2022
Historically, Bitcoin has positive returns in February as it produced an average return of 12% in February throughout the past nine years. Moreover, Bitcoin finishes the month with a gain over 85% of the time. Last year, BTC gained nearly 37% in four weeks. After a strong start into February, BTC has settled in the $41,000 to $45,000 range.
Bitcoin’s current price is $43981.30, which is up by around 33.50% since Jan. 24, but $1,000 lower than last Friday. The price of Bitcoin has seen a steady start to the week, though some crypto analysts have predicted a volatile few weeks ahead.
The recent volatility has come amid a broader market selloff driven by investors recalibrating their portfolios to account for a more aggressive Fed. According to the Fed's report which was published last Thursday, U.S. inflation hit 7.5% in January, which has updated 40-year highs. Traders from Goldman Sachs forecast that there might be up to seven rate hikes this year. Worries that an aggressive central bank tightening cycle going forward will hamstring risky assets has made it difficult for some traders to maintain their bullish outlook on Bitcoin.
Some analysts are also skeptical of BTC due to the Biden administration preparing to release an executive order in February to regulate Bitcoin as a matter of national security. It is hard to predict if the new regulations will have a positive or negative impact on the price of Bitcoin. Even though history points to positive returns in February, the possibility still exists that it could end up falling for a third consecutive month.
Data from the tracking tool CoinGecko shows that Bitcoin price live is facing resistance at $45,500. Vanda Research, meanwhile, said in a recent note that most of the bearish bets on a weaker price were entered at around $47,000. However, crypto funds remain bullish on the crypto market for February. According to latest data, investors poured 22.1 million into Bitcoin-focused funds last week as the crypto market stabilized from the end of January, which was the second consecutive week of money inflow into BTC. This helps Bitcoin’s current price to partly stabilize above $40,000.
The lowest price of Bitcoin in January occurred on 24th, it dipped to $32944.17 which is 28% lower than the opening price ($46215.50) of 2022, according to Gate.io, a leading crypto exchange for trading Bitcoin. Fortunately, the Bitcoin price returned at over $38,000 on the last day of January as selling pressure is apparently wearing off.
Bitcoin has staged a remarkable recovery at the start of February, rising in price by nearly $10,000 since the beginning of the month. The latest gains in last Friday have taken the cryptocurrency back above $45,000 and appears to have reversed the bearish trend. So, which February 2022 may be for Bitcoin, continue bullish or restart bearish?
Bitcoin Price Analysis for February 2022
Historically, Bitcoin has positive returns in February as it produced an average return of 12% in February throughout the past nine years. Moreover, Bitcoin finishes the month with a gain over 85% of the time. Last year, BTC gained nearly 37% in four weeks. After a strong start into February, BTC has settled in the $41,000 to $45,000 range.
Bitcoin’s current price is $43981.30, which is up by around 33.50% since Jan. 24, but $1,000 lower than last Friday. The price of Bitcoin has seen a steady start to the week, though some crypto analysts have predicted a volatile few weeks ahead.
The recent volatility has come amid a broader market selloff driven by investors recalibrating their portfolios to account for a more aggressive Fed. According to the Fed's report which was published last Thursday, U.S. inflation hit 7.5% in January, which has updated 40-year highs. Traders from Goldman Sachs forecast that there might be up to seven rate hikes this year. Worries that an aggressive central bank tightening cycle going forward will hamstring risky assets has made it difficult for some traders to maintain their bullish outlook on Bitcoin.
Some analysts are also skeptical of BTC due to the Biden administration preparing to release an executive order in February to regulate Bitcoin as a matter of national security. It is hard to predict if the new regulations will have a positive or negative impact on the price of Bitcoin. Even though history points to positive returns in February, the possibility still exists that it could end up falling for a third consecutive month.
Data from the tracking tool CoinGecko shows that Bitcoin price live is facing resistance at $45,500. Vanda Research, meanwhile, said in a recent note that most of the bearish bets on a weaker price were entered at around $47,000. However, crypto funds remain bullish on the crypto market for February. According to latest data, investors poured 22.1 million into Bitcoin-focused funds last week as the crypto market stabilized from the end of January, which was the second consecutive week of money inflow into BTC. This helps Bitcoin’s current price to partly stabilize above $40,000.
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