With its price rising to $60,000 over the last day, February has turned out to be quite the bullish month for the Bitcoin price. According to data from Coinglass, this green month has seen the emergence of the second most profitable February in the history of Bitcoin.
February Brings Glad Tidings For Bitcoin
The performance of Bitcoin in February has led to a highly successful green month, and the best February for the cryptocurrency in over a decade. Looking at data from Coinglass, it shows the price of Bitcoin is up around 39% this month. Compared to the performance of Bitcoin in the same month in the last 10 years.
February 2013 still holds the record for the highest return, with a 61.77% return for the month. Then, in February 2021, the monthly returns would reach 36.78%, which was the second-highest until February 2024. However, ending in green for February is not out of the ordinary as the month has seen more green closes compared to red since Bitcoin was launched.
BTC monthly returns | Source: Coinglass
Looking at the historical performance of years when February closed out in green, it could paint a picture of where the price of Bitcoin is headed next. Going back to 2013, the outperformance in February carried on into March, which outperformed February by a mile. March 2013 ended with a 172.76% return, and the whole of that year was characterized by an impressive performance from Bitcoin.
Then again, in 2021 when the month of February ended with high returns, it carried on into the month of March as well, ending with a 20.84% return. Using the trend from both of these months, which proceeded by February, closing with high returns, it could point to a continuation of the bull rally from here.
Not All Glad Tidings For BTC In March
While the months of February ending on a high note for Bitcoin have seen an equally bullish month of March follow, it is not always the case. For example, between the years 2015 and 2019, February closed in the green for each one. However, only in 2019 did the rally continue in March, while the rest all saw BTC’s price decline in varying degrees.
However, it seems the performance in February does have a bearing on how things do turn out in March. For the months which were followed by a decline in price, the trend is that the better Bitcoin performed in February, the better it held up in March.
Between 2015 and 2017, the months of February ended with an average close of +20%, while the highest drawdown in the next month was 9%. But when the month of February ended with meager gains of 0.47% in February, the month of March that followed saw Bitcoin decline 32.85%.
So, while there is a possibility that March could end up being a red month for Bitcoin, its outperformance in February could serve as a cushion to give the price a softer landing.
BTC price breaks above $60,000 | Source: BTCUSD on Tradingview.com
Featured image from Peakpx, chart from Tradingview.com