Bitcoin (BTC) price, is poised to show its worst performance since January 2018, with less than a few hours left for that to happen.
Although January is not always a ‘comfortable’ month for long-term investors, it is not uncommon for Bitcoin to experience a ‘double-digit’ loss in February. The date was 2014 when Bitcoin last suffered a double-digit loss in February.
Data from analytics firm Coinglass, which offers on-chain data, shows that January 2022 was the least profitable period since the peak of Bitcoin’s last halving cycle. However, investors are still waiting for a move.
Will Bitcoin Experience a Rare “Red” February?
Contrary to almost all expectations, BTC price action continued to underperform this month. According to data from Cointelegraph Markets Pro and TradingView, at current spot prices of $36,800, BTC/USD is down 20.1% from the start of the year, compounding the declines that began in November.
Historical figures show that January is generally a “green” month for Bitcoin, in stark contrast. BTC gained more than 21% compared to 2021. The same can be said for November and December, but making this year particularly painful for the bulls. These two months in 2020 saw price increases of 43% and 47%, respectively.
Meanwhile, the last “red” for Bitcoin was in January 2018, as the enthusiasm surrounding the then-all-time highs of $20,000 had quickly cooled.
Coming about 18 months after the previous block subsidy halving event, this halving cycle peak should have played out again in late 2021. The reality was quite different, and Bitcoin’s poor performance has seen its time-tested price bracket come for criticism.
While Cointelegraph considers what could break the downtrend next month, Bitcoin (BTC) February is still on its side when it comes to price strength.
Last year, BTC/USD rose nearly 37% in four weeks, with the last drastic drop in February 2014. In contrast, in 2018 Bitcoin hardly moved.
Bitcoin Short Positions Appear To Be In The Air
As Cointelegraph reported, the out-of-character price behavior since November has left analysts wondering if Bitcoin is in a bull or bear market.
At the peak of this month’s losses last week, long-term investors are down 52% against all-time highs, so sentiment favors further downside moves.
The data shows the determination of opportunistic traders. The drop below $37,000 after the weekly close has been heavily exploited by shorts who have been betting on continued weakness. Meanwhile, the uptrend seems to be generally out of the game until a convincing retracement of $38,500 and higher.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.