Bitcoin (BTC-USD) hovered around $68,000 on Tuesday, poised to potentially end a five-month streak of losses. According to Ed Engel, an analyst at Compass Point, Bitcoin has never experienced six consecutive monthly declines in its 17-year history. After suffering five months of losses from October to February, the cryptocurrency is now trading within 1% of February’s closing price of $67,000.
In the current market environment, Bitcoin has demonstrated greater resilience compared to equities, as both the S&P 500 and gold prices have declined since the onset of the Middle East conflict on February 28. Despite appearing overdue for a relief rally, Engel emphasized that blockchain data still reflects bearish trends, leading him to believe that Bitcoin may retest lows around $60,000. “March’s resilience looks like a textbook relief rally within a broader crypto winter,” he added.
Sean Farrell, head of digital assets at Fundstrat, echoed a cautious sentiment regarding Bitcoin’s recent performance. In a client video on Monday night, he advised a measured approach, suggesting that it remains a prudent time to preserve capital and maintain flexibility in investment strategies.
Conversely, analysts from Bernstein have suggested that Bitcoin might have finally reached a low point. Gautam Chhugani, a Bernstein analyst, pointed out that the cryptocurrency seems to be bottoming out and reaffirmed the firm’s ambitious price target of $150,000 by the end of 2026. He noted that there has been an uptick in investor interest in exchange-traded funds (ETFs) in recent weeks, with ETFs now holding more than 6% of Bitcoin’s total supply. Additionally, digital asset treasury firm MicroStrategy (MSTR) has continued to be a significant buyer, currently possessing at least 3.6% of the overall supply.
Market analysts continue to watch Bitcoin’s movement closely, especially amid the ongoing headwinds faced by traditional equities, as they assess the future performance of the cryptocurrency in a turbulent financial landscape.
