During their short life of 10 years, Bitcoin prices have traditionally experienced better months than others. February has always been a month for the bulls – so will history repeat itself in 2020?
Bitcoins price dynamics increase
The Bitcoin price continued to build on the weekend momentum and today it has increased again. According to Tradingview.com, BTC has been pumped around 500 dollars in the last 12 hours – from 8,650 dollars to 9,150 dollars.
The 6 percent increase is based on the momentum from the weekend, which many attribute to the negative news about the Chinese coronavirus outbreak.
It is true that Asian stock markets have fallen along with the Chinese yuan, which is usually a positive signal for Bitcoin.
However, analysts like Josh Rager see nothing unusual in the BTC markets.
“The short answer – $BTC has not made any unusual price changes during the recent waves of panic, despite the fact that Chinese stocks have suffered considerable damage.”
BTC prices are now back at their multi-month resistance level and need to climb to around $9,700 where the next barrier is located.
Rager adds that the monthly candle looks very strong and if momentum continues, it could lead to a five digit increase.
Good looking candle on the monthly chart, looks like it wants to overtake the Nov. open
It would be extra bullish if this month closed above $9250
Price would likely look to push up over $10k and re-test the POC of the June to Sept '19 pic.twitter.com/Hxl5yZys7Y
— Josh Rager 📈 (@Josh_Rager) January 28, 2020
On the lower side BTC could return to support at $8,600 or $8,300, but a breach into the $7k zone could undo the recent momentum.
The February Feeling
Crypto and forex chartist Alessio Rastani has looked at the monthly chart and found that February is usually a very strong month for Bitcoin.
“Interesting chart how #Bitcoin normally behaves from January to July. Note that February is usually the strongest month in this period – a positive month.”
“Interesting chart of how #Bitcoin usually behaves from January to July. Notice how February is usually the STRONGEST month in this period – a positive month. Sadly the sample size is small. Do you agree with the chart that Feb might be good for BTC? pic.twitter.com/QgOVGQ5tuv”
– Alessio Rastani (@alessiorastani) January 27, 2020
This could be the case again now, provided that history rhymes with February. But if you consider that January’s annual figures are usually bearish, and a 27% gain has already been recorded this month, the opposite could also be the case.
Observing the quarterly results of the last six years shows The first quarter was down in four of these years, with gains recorded only in the first three months of 2017 and 2019. Q2, on the other hand, apart from 2018, was the best period in the last six years.
Bitcoin’s safe haven status is strengthened by two separate incidents that led to simultaneous BTC and gold rallies. Add to this the momentum that Bitcoin’s May plans to halve in the coming weeks, and prices look quite optimistic.