Bitcoin is trading around $68,700, down nearly 22% year to date and on pace for its weakest first quarter since 2018. After starting the year near $87,700, BTC has shed almost $20,000 in just a few weeks, putting pressure on the broader crypto market.
While early-year weakness is not unusual for Bitcoin, the scale of the decline has raised concerns that the current correction may not be over yet.
Historically, Bitcoin has posted a negative first quarter in 7 of the past 13 years.
However, a 22% drawdown would mark its worst Q1 performance since the 2018 bear market, when BTC plunged nearly 50% in the opening months of the year.
January and February both closed in the red, increasing the likelihood of a rare back-to-back negative start.
To meaningfully shift the narrative, Bitcoin would need to reclaim the $80,000 region, which currently appears distant given prevailing momentum.
That said, history shows that weak first quarters do not necessarily define the full year. In eight of the past thirteen years, Q2 delivered the opposite performance of Q1.
This keeps the medium-term outlook more nuanced than the headlines suggest.
Between February 12 and February 15, Bitcoin staged a sharp 9% rebound. On the surface, the move appeared constructive. Underneath, leverage data tells a different story.
Open interest in BTC futures jumped from roughly $19.6 billion to $21.47 billion during the rebound, an increase of nearly $1.9 billion.
Funding rates also turned strongly positive, signaling that traders were aggressively positioning for further upside.
However, the broader chart structure still resembles a bear flag. The recent rally unfolded within a downward continuation pattern, and price is now drifting back toward the lower boundary of that structure.
Momentum indicators add to the caution. A hidden bearish divergence formed on the 12-hour chart, with price making a lower high while RSI printed a higher high. This pattern often appears when sellers are quietly regaining control.
At the same time, Bitcoin’s Net Unrealized Profit/Loss surged by roughly 90% over several days, indicating that many holders quickly returned to paper profits.
Similar profit spikes in early February preceded a 14% drop. If traders rush to lock in gains again, selling pressure could accelerate.
Technically, the $66,270 area is a critical near-term support. A confirmed breakdown below this zone would activate the bear flag continuation pattern.