After a strong bullish rally that started on February 8 with Tesla, Bitcoin started to lose buying power on February 25, and this Sunday, it has fallen below -5%, losing over $2,500 in price.
As reported by Crypto News Australia, negative returns are expected this month, with an 80% probability. But for the crypto community, this is just another buying opportunity, as March presents itself as the bearish month for Bitcoin, followed by a strong positive return in April.
Several Corrections Before Taking Off
Bitcoin reached prices nearly $60,000 on February 21, trading at levels of $58,300, but soon dropping even lower, and entering a consolidation state between $50k and $45k.
But while Bitcoin drops and consolidates, this could be another opportunity for buyers, as the overall sentiment remains bullish.
The crypto community believes Bitcoin still has not reached its peak as more companies are still buying great amounts of BTC.
Reviewing the bull market for 2017, there were at least 6 corrections with 30 to 40 % losses, before commencing a bull run with gains over 150%, according to Bitcoin Archive.
Key Events to Consider:
- New York Digital Investment Group —NYDIG— files with the SEC for a BTC ETF, together with Morgan Stanley.
- Counterpoint Global, an Equity Team from Morgan Stanley, is currently exploring the possibility of investing $150B in Bitcoin
- MicroStrategy buys an additional 19,452 BTC —$1.3B—.
- Australia and Canada are set to open the first BTC ETFs.
- The overall sentiment in Australia is generally bullish, meaning over 5,000,000 Aussies will invest in crypto, some even aiming for levels over AU$ 100k.
Most of these events happened by mid-February, so it’s essential to consider that institutions are still buying great amounts of BTC.
We can expect key support levels of 40 – 45k, while others argue it could reach levels of 38k before BTC takes off again by mid-April, reaching levels over $60k with a strong demand again.
The number of BTC wallets has also grown together with institutional adoption, according to Glassnode:
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