InvestAnswers host has observed that Bitcoin usually plunges 8.5 times out of 10 in March
He contends that the coming Fed meeting and current global unrest could affect Bitcoin’s price
A popular crypto analyst who hosts InvestAnswers, a YouTube channel on financial education, has told his subscribers how he expects the BTC market to play out in March. His projection was in response to a question from a follower who inferred to the analyst’s previous assertions that March is usually a bearish month for Bitcoin.
The InvestAnswers host explained that Bitcoin typically posts a red candle in March a strong 8.5 times out of ten. The host noted that several factors could add to this historical pattern and destabilise Bitcoin in the coming month.
Several factors hang in the balance
A Federal Open Market Committee (FOMC) meeting is happening in mid-March, and resolutions from such meetings have in the past, on numerous occasions, affected the markets. He also holds that the current global unrest could mean a plunge for Bitcoin. He further observed that expectations often influence investor trading patterns. Being the case, there should be “softness in the Bitcoin market.”
The analyst also brought to light an interesting perspective that should all the negative news come before March; then it could be a good month.
“If all the bad news comes out in February, then March could be positive. For example, look back to 2021, it was actually a good month.”
Further, referencing a chart that runs back to 2013, the InvestAnswers host showed the historical returns in the month. He demonstrated that they [returns] have been predominantly red in that period.
“We had a positive 2021, up 30%. We also had 2019 up 7% and 2013 up 172%. It’s all across the board, but typically it is one of the worst historical months for Bitcoin, so we need to be careful.”
However, he also warned that Bitcoin conforming to the historical returns patterns is not a given, citing the good month that March was last year.
Ethereum stands out for massive utility
On Ethereum, the host notes that it has a lot more upside (than downside), which is currently at 60% to regain all-time high levels. He added that Ethereum hosts an extensive range of applications, and the activity on layer-2s above it should boost its market performance.
“I think ETH will slowly get nibbled away by some of the other layer-1s out there, but there’s also some exciting things happening with layer-2s on top of the ETH platform,” he said.