Bitcoin has lost value for six months in a row, approaching one of the longest decline streaks in its history. Coinglass data indicates that this performance of the cryptocurrency is similar to the long-term decline previously experienced between August 2018 and January 2019. If Bitcoin can only achieve an increase of just over one percent in this period, it will be able to complete the month with an increase.
Value losses in the last six months
Bitcoin lost value by 4 percent in October, 18 percent in November and 3 percent in December. In January, this decrease reached 10 percent, and in February there was a loss of 15 percent. There is currently a decline of approximately 1 percent in March. This chart shows that the negative trend in the cryptocurrency market has continued for six months.
A similar picture occurred in the period from late 2018 to the beginning of 2019, and then Bitcoin rose for five consecutive months. This may support hopes of a possible recovery for some investors in the market.
Technical indicators and macroeconomic factors
According to Glassnode data, Bitcoin is currently above important long-term support levels. The cryptocurrency remains above its 200-week moving average of $59,268 and the on-chain average cost level. In recent bear markets, Bitcoin often fell below these thresholds and stayed there for a while.
Macroeconomic conditions continue to increase the pressure on the market. As a result of the ongoing conflicts in the Middle East, oil prices have been hovering above $100 for a long time. In this environment, it makes it difficult for central banks to make decisions about reducing interest rates or taking more tightening steps.
On the other hand, increasing concerns about the security risks that quantum computers may pose increase uncertainty about the future of the market. Such factors create a cautious outlook for investors, even if technical indicators give positive signals.
Despite all these negativities, it is noteworthy that Bitcoin has increased slightly since the beginning of the conflict in the Middle East. This development indicates that partial resilience continues in Bitcoin in a period when global risk appetite is low.
