Bitcoin and Ethereum have seen steep declines in February 2025, leaving investors wondering about the market’s future. Historical trends suggest that March may be a weak month for both assets, with historical data pointing to muted or negative performance.
In February 2025, Bitcoin dropped over 12%, while Ethereum plummeted 38%. The widening gap between the two assets suggests shifting investor sentiment, potentially driven by liquidity concerns and sector-specific weaknesses. However, Bitcoin has historically offered little relief in March, with an average return of just 3.42%.
Ethereum’s sharp downturn raises questions about its resilience amid broader market turbulence. Notably, both assets have posted declines in previous years, including 2014, 2015, 2018, and 2020 for Bitcoin, and 2018 and 2022 for Ethereum.
Bitcoin is currently struggling below its 50-day SMA and hovering near its $80,000 support zone. The RSI suggests that the asset is still in bearish territory, but not yet deeply oversold. Ethereum’s technicals also paint a similarly bearish picture, with the asset remaining significantly below its 50-day and 200-day SMAs.
For both assets to rebound, they need to reclaim key levels and see stronger buying volume. Investor sentiment plays a crucial role in shaping price action during market downturns, but caution is needed before assuming outright capitulation. The current sentiment suggests caution, but macroeconomic concerns persist, creating opportunities for contrarian buyers.
Source: https://ambcrypto.com/bitcoin-and-ethereum-what-march-holds-after-februarys-brutal-losses