Bitcoin's Monumental Surge: Records Its Largest Ever $20K Monthly Candle in USD!

Bitcoin (BTC) tickers down to $61,510, still below all-time highs despite significant gains in February. However, a new record has been set with a $20,000 monthly candle.

Bitcoin Bulls Triumph: February Records Largest Gain Since December 2020

The monthly close on February 29 marked a significant win for Bitcoin bulls, with February delivering the largest gains for BTC/USD since December 2020. According to data from CoinGlass, BTC saw a remarkable 43.55% increase in February, contributing to the biggest monthly candle in history.

BTC/USD monthly returns (screenshot). Source: CoinGlass

The pseudonymous lead on-chain analyst at Glassnode, known as Checkmate, highlighted this milestone on X (formerly Twitter), describing February's $19.84k Bitcoin candle as "unreal." This surge added $390 billion to Bitcoin's market cap, representing a remarkable 47% increase.

Bitcoin monthly close data. Source: Checkmate/X

Concerns Mount Over Bitcoin Volatility Despite Record Gains: Analysis of Order Book Liquidity and Price Movements

Despite the impressive gains, concerns lingered regarding potential volatility as monthly candles expired, particularly given the current lack of substantial bid liquidity in order books. The nearest potential safety net was identified at $59,000, as shown in a snapshot of BTC/USDT order book liquidity on Binance.

BTC/USDT order book liquidity for Binance. Source: Material Indicators/X

Material Indicators co-founder Keith Alan noted significant changes in order book composition, with bids moving up to $52,000. This adjustment came amidst unexpected events, including a surge to $64,000, a wick down to $58,000, and nearly $8 billion in BTC ETF inflows, pushing the price beyond $60,000.

Bitcoin Holds Strong at $61,600: Navigating Volatility with Confidence Post-Monthly Close

Despite the volatility, Bitcoin traded at $61,600 at the time of writing, with volatility remaining manageable after the monthly close. This stability reflects continued interest and confidence in Bitcoin, despite its failure to reach all-time highs.

In summary, Bitcoin's February performance marked a historic milestone with the largest monthly candle at $20,000, highlighting the resilience of Bitcoin amid market fluctuations and signaling ongoing investor confidence in the digital asset.