February witnessed a monumental surge in Bitcoin’s price, ascending nearly $20,000 – marking the largest green candle in its storied history. This price movement gives Bitcoin enthusiasts numerous reasons for optimism as the cryptocurrency cautiously eyes assault on new all-time highs after breaking the $60,000 barrier.
Despite not yet surpassing historical peak levels, Bitcoin bulls have established a new record in the wake of its incredible gains in February. In a March 1st post on X (formerly Twitter), the account Checkmate, a pseudonymous lead on-chain analyst for Glassnode, unveiled this “remarkable” BTC price event.
Post Grid #4
Cryptocurrency and Anonymity: How Private Can Your Transactions Be?
In the digital age, privacy has become a significant concern, particularly in the realm of financial transactions. Cryptocurrencies, heralded for…
February’s Unbelievable Candle for Bitcoin
The closure of the monthly candle sealed a clear victory for Bitcoin bulls. According to CoinGlass data, February brought the most significant gains for BTC/USD since December 2020, at a staggering 43.55%.
Yet, in absolute terms, the narrative becomes even more uplifting, as Checkmate rightly noted. Referring to monthly performance data from Glassnode, it’s evident that February culminated in a nearly $20,000 monthly candle.
“Incredible… February 2024 showed us a Bitcoin candle of $19.84 thousand, marking the largest monthly USD increase in the history of this asset. This surged Bitcoin’s market capitalization by $390 billion… An astonishing 47%,” Checkmate commented on X.
For context, it’s worth noting that $20,000 itself historically represented the highest price level for BTC, a milestone first reached in December 2017 and remained unsurpassed for three years. It took Bitcoin nearly a decade to achieve this level.
BTC’s “Safety Net” Around the $52,000 Mark
It’s important to add that the monthly closure also sparked frustration among market participants. Monthly candles can evoke increased volatility at their conclusion. This poses a potential problem for Bitcoin in its current state, as order books lack substantial offer liquidity to act as support.
A snapshot of the BTC/USDT order book liquidity on the world’s largest crypto exchange, Binance, identifies $59,000 as the nearest potential safety net.
In his analysis, Keith Alan, co-founder of Material Indicators, revealed significant changes in the order book composition at lower levels. Several offers previously appearing around the $20,000 zone shifted up to $52,000.
“Over the last 24 hours, we’ve witnessed the most significant change in the order book since January. The price spike to $64,000 and a 49% monthly candle weren’t on anyone’s bingo card, just as the wick down to $58,000 or nearly $8 billion influx into BTC ETFs that pushed the price far beyond $60,000 than most of us anticipated,” Alan remarked.
Alan highlighted a pivotal event in the latter half of the previous month – Bitcoin spot exchange-traded funds (ETFs). These have already seen record amounts of money poured into them within a few weeks.
As of writing, the BTC price hovers around $61,994 according to CMC, illustrating the dynamic and ever-evolving landscape of cryptocurrency investment and the significant impact of institutional inflows on market movements.
This unprecedented rise in February not only underscores the growing investor confidence and market maturity but also sets a new benchmark for future performance expectations. The shift in order book liquidity towards higher price levels reflects a market gearing up for sustained bullish momentum, driven by both retail and institutional enthusiasm.
As Bitcoin continues to navigate through market cycles, the strategic movements in February 2024 will likely be remembered as a milestone moment, signaling a strong market capitalization increase and potentially reshaping investment strategies in the crypto space. With the advent of spot ETFs and other institutional-grade investment vehicles, Bitcoin’s role in the broader financial ecosystem is becoming increasingly significant, paving the way for new highs and broader adoption.
