Bitcoin’s Historic Run: Seven Consecutive Monthly Green Closes in Sight

Bitcoin (BTC), the world’s leading cryptocurrency, is on an impressive streak as it aims to achieve a significant milestone – seven consecutive monthly green closes by the end of March 2022. To reach this historic feat, Bitcoin must maintain its price above February’s close of $61,130, as per the data from Tradingview.

A Sustained Uptrend and the Role of ETFs

The last time Bitcoin experienced such a prolonged uptrend was from October 2020 to March 2021. During this period, BTC price soared by a remarkable 445%, rising from $10,781 to an all-time high of $58,783. However, following this impressive rally, Bitcoin underwent a notable correction and plummeted by 40%, declining from $58,790 to $35,037.

Historically, Bitcoin has often seen corrections prior to halving events. However, the recent influx of funds from spot Bitcoin Exchange-Traded Funds (ETFs) could potentially fuel further price increases in the near future. Matthijs de Vries, the founder of AllianceBlock, remains optimistic about this development and believes that the constant inflow into spot Bitcoin ETFs could serve as a significant catalyst for price growth in the coming days.

Price Projections and Market Dynamics

Bullish sentiment is expected to strengthen further as the Bitcoin halving cycle approaches. De Vries also envisions Bitcoin settling at $74,000 by the end of Q1 2022. However, recent market movements have seen a dip in Bitcoin’s price by 6.1% over the past week, with the cryptocurrency currently trading at $64,177 as of 4:30 pm UTC (Coordinated Universal Time).

Within the ‘Danger Zone’: Pre-Halving Retracements and Investor Sentiment

Despite this short-term decline, Bitcoin has still recorded an impressive 25% gain on the monthly chart. Analyzing historical chart patterns, crypto analyst Rekt Capital notes that Bitcoin remains within the “Danger Zone,” a zone typically associated with pre-halving retracements. This suggests there is a possibility of downside movement in the coming weeks until the halving event.

However, Bitcoin’s price dips are not discouraging investors; instead, they are seizing opportunities to accumulate more BTC. Willy Woo, Bitcoin analyst and CMCC Crest’s managing partner, highlights this trend, noting that while ETFs experienced outflows of $1.6 billion during the first dip, the Bitcoin network received net flows totaling $1.1 billion. This indicates that many investors are opting for self-custody solutions and leveraging price dips to accumulate more BTC.

Navigating the Short-Term Volatility and Long-Term Optimism

Bitcoin’s current price trajectory and market dynamics present a mix of short-term volatility and long-term optimism. Factors such as ETF inflows, halving cycles, and investor sentiment continue to play crucial roles in shaping Bitcoin’s price movements. The coming weeks leading up to the halving event will likely be closely monitored by market participants for further insights into Bitcoin’s resilience and potential for sustained growth.