Bitcoin (BTC) is poised to secure its seventh consecutive monthly price increase, a historic milestone for the cryptocurrency. If BTC holds above $61,130 until March's end, it will mark the first time in history that it has seen seven consecutive months of gains. This bullish trend follows a pattern seen from October 2020 to March 2021, when BTC surged 445% before experiencing a 40% correction. Despite historically facing corrections during pre-halving periods, Bitcoin's prospects remain optimistic due to inflows from spot Bitcoin exchange-traded funds (ETFs) bolstering its price.
Bitcoin (BTC), the world's leading cryptocurrency, is poised to achieve a historic milestone by potentially securing its seventh consecutive monthly increase in value, a feat it has never accomplished before.
As of March 29, 2023, Bitcoin's price stands at $63,878, well above its closing price of $61,130 in February. Should it maintain this level or exceed it by the end of March, Bitcoin will etch its name in history as the first cryptocurrency to achieve seven consecutive months of green candles on its monthly price chart.
The significance of this achievement cannot be overstated. The last time Bitcoin experienced a similar rally was between October 2020 and March 2021, when its price surged an impressive 445% from $10,781 to $58,783. That rally was followed by a 40% correction over the subsequent three months.
However, experts believe that the current market conditions are different due to the influx of capital from spot Bitcoin exchange-traded funds (ETFs). Matthijs de Vries, founder of AllianceBlock, told Cointelegraph, "The constant inflow into the spot Bitcoin ETF will serve as a major boost to drive price growth in the coming days. With the BTC halving cycle also closing in, the bullish sentiment will be complemented overall."
This sentiment is echoed by various analysts. Willy Woo, a Bitcoin analyst and managing partner at CMCC Crest, highlighted that despite the recent sell-off by spot Bitcoin ETFs, retail investors are actively buying the dip. "ETF investors showing they're noob," Woo tweeted. "On the first dip, ETFs did $1.6b of outflows while the Bitcoin network received $1.1b of total net flows. This means plenty of self-custody investors bought the dip."
Despite the optimism surrounding Bitcoin's price performance, it is important to note that historical data suggests the possibility of a pre-halving correction. Rekt Capital, a renowned crypto analyst, cautioned in a recent tweet that Bitcoin remains in the "Danger Zone" where historical pre-halving retraces occur.
However, while the potential for a correction exists, the overall market sentiment remains bullish. Matthijs de Vries predicts that Bitcoin could reach $74,000 by the end of the first quarter.
It is crucial to emphasize that this article does not constitute financial advice. Investors should conduct their own thorough research and exercise due diligence before making any investment decisions.
