Bitcoin price down 20% so far in 2022 after worst January since 2018

2 years ago

Bitcoin (BTC) is heading for its worst January show successful 4 years — could each not beryllium what it seems?

Data from on-chain analytics assets Coinglass shows January 2022 to beryllium the slightest profitable since the highest of Bitcoin’s past halving cycle. Investors, however, are still waiting for a “blow-off top.”

Will Bitcoin spot a uncommon "red" February?

Against practically each expectations, BTC terms enactment has continued to underperform this month.

At existent spot prices of $36,800, BTC/USD is down 20.1% versus the commencement of the year, compounding misery that began successful November, information from Cointelegraph Markets Pro and TradingView shows.

Historical figures amusement that January is conversely often a “green” period for Bitcoin — 2021, by comparison, delivered gains of much than 21%.

The aforesaid tin beryllium said for November and December, however, making this twelvemonth particularly achy for bulls. Those 2 months successful 2020 saw terms increases of 43% and 47% respectively.

The past “red” January for Bitcoin, meanwhile, was successful 2018, arsenic the fervor surrounding the travel to past all-time highs of $20,000 rapidly cooled.

That halving rhythm peak, coming astir 18 months aft the erstwhile artifact subsidy halving event, should person played retired again successful precocious 2021. The world was rather different, and Bitcoin’s underperformance saw time-tested terms apparatus travel successful for criticism.

While Cointelegraph is considering what could interruption the downtrend adjacent month, February inactive has past connected its broadside erstwhile it comes to Bitcoin terms strength.

Last year, BTC/USD gained astir 37% successful 4 weeks, portion superior downside past occurred acold backmost successful February 2014. In 2018, by contrast, Bitcoin hardly moved.

Shorters successful the temper this week

As Cointelegraph reported, the out-of-character terms behaviour since November has got analysts wondering whether Bitcoin is successful a bull oregon a carnivore market.

At the tallness of this month's losses past week, hodlers were down 52% against all-time highs, and truthful opinions favor further downside to come.

Data shows opportunist traders' resoluteness — the dip beneath $37,000 which followed the play adjacent was heavy utilized by shorters betting connected weakness continuing.

Big shorts feeding connected this dip beneath $37k connected Binance Perp. pic.twitter.com/lPapGkSClp

— TXMC (@TXMCtrades) January 31, 2022

Bullish bias, meanwhile, is broadly disconnected the array until a convincing retake of $38,500 and higher.

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