Bitcoin on Pace for Longest Losing Streak Since 2018 Bear Market

💡 DMK Insight

Bitcoin’s potential fifth consecutive red month is a big deal for traders: it signals a prolonged bearish sentiment that hasn’t been seen in years. If February closes in the red, it could trigger further selling pressure as traders reassess their positions, especially those using technical analysis. Historically, prolonged downtrends can lead to capitulation, where retail traders panic and sell off their holdings, potentially pushing prices even lower. Watch for key support levels that could be tested if this trend continues—if Bitcoin breaks below recent lows, it might invite more aggressive shorting from both retail and institutional players. On the flip side, this extended downturn could also present a buying opportunity for those looking to accumulate at lower prices. If you’re considering a long position, keep an eye on the $20,000 mark as a psychological level; a bounce from there could signal a reversal. But be cautious—if the selling continues, it could lead to a cascade effect across the crypto market, impacting altcoins as well. Monitor trading volumes for signs of capitulation or accumulation in the coming weeks.