February began on the wrong foot, even though its historically a highly positive month for bitcoin. This time, though, the cryptocurrency plunged last Sunday and Monday by $15,000 within days.

Although the asset has failed to recover most of the losses since the end of January, the overall bullish sentiment remains strong on several fronts.

Fear Is Good

The aforementioned crash took bitcoin down hard as its price stood above $106,000 last Friday before it dumped toward $91,000 on Monday morning during the US tariffs-induced collapse. Such substantial price movements in either direction tend to influence the overall market sentiment, and this correction was no exception.

Popular crypto analyst Ali Martinez pushed a chart indicating that the crowd has turned negative toward BTC. Moreover, the Fear and Greed Index also went from greed to fear for the first time since the US elections in November. However, both of those could actually be a blessing in disguise for the largest crypto asset as the best buying opportunities often come when crowd sentiment toward bitcoin is negative, said Martinez.

Bitcoin Fear and Greed Index. Source: Alternative.me Lets not forget Warren Buffetts timeless advice, suggesting that investors should be fearful when people are greedy and vice versa.

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Critical Support and Buying Pressure

Martinez further highlighted $92,800 as the critical support that showcases whether the ongoing bull run is intact or not. If BTC maintains it, the MVRV pricing bands show that the bull case is still active, while a drop below it could spell trouble for the asset.

The cryptocurrency has slipped beneath that line on several occasions in the past few months but has managed to bounce above it almost immediately after each correction.

#Bitcoin $BTC holding above $92,800 keeps the bull case intact, according to the MVRV Pricing Bands. pic.twitter.com/ICB14eJEHT

Lastly, the analyst asserted that investors operating on two of the biggest crypto exchanges HTX and BitMEX have gone on an accumulation spree as the buying pressure on both had gone through the roof in the past day or so.

A surge in buying pressure for #Bitcoin $BTC was just recorded on @HTX_Global and @BitMEX! pic.twitter.com/zfjKLgdsGm

Bonus: February

Although BTC is currently down by over 5% since the start of February, the second month of the year is historically a highly bullish one for the asset. This is particularly true for Februaries, which come after a halving year, such as the current one.

In 2021, BTC soared by nearly 37% in February; in 2017, its gains were a bit more modest at 23%, while in 2013, the cryptocurrency jumped by almost 62%.

Still, history is no indication of future price performances, but it does tend to rhyme sometimes.

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Cryptocurrency charts by TradingView.