Bitcoin finally broke its six-month losing streak, recording a positive price variance in February 2019.
The top-ranked cryptocurrency had been experiencing monthly losses since the middle of 2018. However, some analysts say February’s mini-rally is only a reprieve with another price plunge imminent.
Bitcoin Records First Monthly Price Gain of 2019
According to data from CoinMarketCap, Bitcoin gained a little over 11 percent in February 2019. The top-ranked cryptocurrency began the month trading at $3,469 and closed out February 2019 trading at $3,859.
This increase marks an end to a six-month losing streak for Bitcoin. The last time BTC ended the month on a high was in July 2018 when it gained 26 percent.
In February 2019, Bitcoin rallied above the $4,000 milestone, eventually topping out at $4,200. The pioneer cryptocurrency, however, failed to hold the position, sliding down to $3,800.
According to Bloomberg, the price gain in February 2019 also influenced the broader cryptocurrency market. Reports indicate that the Bloomberg Galaxy Digital Crypto Index rose by 16 percent.
Bitcoin Transaction Volumes Continue to Increase
Speaking to Bloomberg, Mati Greenspan, Senior Market Analyst at eToro, said:
“After six months in the red, it’s great to finally close one in the green. What I’ve been watching lately are the number of transactions on the Bitcoin blockchain and the total volumes across crypto exchanges, both of which are holding at their highest levels in more than a year.”
Data from Coin Dance also shows BTC peer-to-peer (P2P) trading at record volumes across the globe. In February, places like Venezuela and Indonesia posted all-time highs on LocalBitcoins, a BTC P2P exchange platform.
Despite the trading volume increase, some technical indicators still point to a prolonged period of sideways trading or the worst, a further downward slide below $3,000. Bloomberg reports that indicators like the GTI Global Strength still show Bitcoin being massively overbought.
Analysts say if BTC fails to maintain the $4,000 during its next upward swing then the top-ranked cryptocurrency could set a new low, likely in the mid-$2,000 region.
According to Greenspan, the bear market isn’t over, but there are signs that BTC will experience another significant upward price rally even if technical indicators paint a gloomy picture.
At a recent charity event hosted by the ALS Association, TRON CEO, Justin Sun predicted that BTC would spend most of 2019 trading in a tight range between $3,000 and $5,000.