However, historical data suggests March has remained a mediocre month for Bitcoin
Bitcoin has had a mostly optimistic month in February, even as the S&P 500 index (SPX) recorded a fall of around 2.61%. At the beginning of March, while the US equities market still tries to recover, Bitcoin is firmly holding on to a support around $23,000. This might signify that BTC/USDT will not be moving parallel with US equities in the near future.
However, going by historical data, Bitcoin has witnessed notable gains in March only twice in the past decade, those being the March of 2013 and 2021. As data from Coinglass notes, those were the only two years when Bitcoin saw double-digit gains in March.
This might serve as a heads up for investors with holdings in BTC, to better plan their trading strategies.
Meanwhile, retail investors and traders in Bitcoin seem to have used the crypto bear run to buy at lower levels, which has proven to be a good move, as opposed to panic-selling out of FUD (fear, uncertainty, doubt). According to Glassnode, crypto wallets holding at least 1 BTC have steadily risen in numbers, and as of March, are very close to touching 1 million.
On March 2, Bitcoin is seen holding on to the support levels of around $23,000 from the past week. This implies the larger market sentiment remains bullish, and traders are still interested in buying the dip.
BTC/USD is currently trading slightly below its 20-day EMA ($23,427), but over its 50-day SMA ($22,793). Bulls have successfully kept the BTC/USD price over the $22,800 support, and the next crucial resistance for Bitcoin to surpass would be around $25,000. Given that Bitcoin moves past that level, the next resistance would be at the $30,000 around levels. Meanwhile, if the price turns back down from the $25,000 levels, we might see range-bound price movements for a few more days.