Should we fear Bitcoin as March approaches? For ten years, the trend has been quite clear: 8 years out of 10 recorded negative performances during this first month of spring. The red prevailed and the recorded declines varied from 1% to 37% depending on the year.
After our article on the two most bullish months for Bitcoin , let's take a look at the one that stands today as the worst month of the year. Thanks to the data recoveredes by Trading View, the table below lists the monthly performance of Bitcoin since 2011.
© TradingView
March, the worst month for Bitcoin
Over the past decade, Bitcoin has mostly experienced declines in March. Last year, the price of Bitcoin fell by 25%, to the same when the traditional financial markets were shaken by the COVID-19 epidemic. Of course, the factors differ each year: in 2018, the month of March was part of the (long) correction following the record surge of at the end of 2017.
Only 8 out of 10 years remain, the month of March does notwill not have benefited over Bitcoin. The exception of 2013 is a reminder to what extent cryptocurrencies do not (yet?) Follow the same trends as the traditional stock market: 9 years ago, Bitcoin recorded an increase of 171% over this month. This growth allowed it to reach its new all-time high.
Quid of March 2021?
What will happen for 2021? To this question, several possibilities. This Monday, Bitcoin recorded a strong correction from its all-time high on Sunday, when the virtual currency flirted with $ 59,000. A downturn - the first since Tesla announced two weeks ago of a colossal investment of a billion and a half dollars in cryptocurrency .
The euphoria surrounding this announcement has since faded to give way to a profit taking on Monday. Looking in the rearview mirror, it's PayPal which initiated the uptrend of the famous cryptocurrency last December. The electronic payments giant had announced that it would allow its users to buy and sell these digital currencies on its platform. Bitcoin then went from 20,000 to more than $ 42,000 over the month in question. Subsequently, its price lost $ 12,000 to rebound off the support of $ 30,000 at the beginning of February.
A correction of the same nature cannot be ruled out - perhaps while waiting be a new institutional announcement that would make decentralized digital currency all the more important. According to experts, technical support at $ 47,000 or even $ 42,000 (in the absence of a real negative announcement) is possible.
That said, if March 2021 were to end in the red a few for-cents only, Bitcoin wouldn’t be a loser. At its current price, it has a capitalization close to a trillion dollars ($ 1,000 billion), enough to defend its role among a myriad of more traditional assets. Its supporters and future investors will take just a breath of fresh air, and its price will only be more solid. For the most skeptical, his speculative bubble will no longer be one.
Read also - How to declare your crypto-currencies in France in 2021?
