- Bitcoin’s 1-year percentage change is approaching the negative zone
- Previous dips have led to decline, but the example of 2020 suggests that there might be hope for recovery
Bitcoin’s [BTC] 1-year percentage change approaches the negative zone-a signal that has traditionally been associated with Bearish-market trends. Although three of the last four authorities of such a dip led to falls, there is a chance that this time the market behavior of 2020 can reflect. At the time, the negative shift was part of a broader consolidation phase.
If this downward trend continues, this can indicate the potential for new lows in the near future.
1-year percentage change significance of the negative zone
The 1-year percentage change of Bitcoin follows its price difference during a rolling period of 12 months and serves as an important indicator for market sentiment. When this metric enters the negative zone, it shows that the price of Bitcoin is lower than a year ago.
Historically this is linked to Beerarish Momentum, which was absent to signal the interest of buying or an increase in sales pressure. In fact, three of the last four cases led three to persistent decline, while a minimum impact was made.
Although the negative zone hinted with reduced volatility and a lower risk, it does not always guarantee further losses. External factors also play a role.
What do the data say?
Alphractal’s graph revealed that Bitcoin’s 1-year percentage change, In addition to price movements marked, four important periods when the metric dropped below zero.
The first instance in 2015 was a short dip during the Berenmarkt of 2014. The longest negative phase took place between 2018 and 2019 after Bitcoin fell from $ 20,000 to around $ 3,200. A short negative period in 2020 was linked to COVID-19 market disruptions, while the most recent episode in 2022 followed the decrease from $ 69,000 to less than $ 20,000.
Source: Alfractaal
It is now March 2025 and the 1-year percentage change of Bitcoin is approaching zero-a drawing potential movement in the negative zone. Analysts are divided on whether this indicates a consolidation phase or the risk of a new bearish cycle.
The case for consolidation
Risks of persistent negative movement
Bitcoin’s 1-year percentage change that goes to the negative zone can indicate a further fall in the charts. Previous cases show that a persistent negative movement often correlates with bearish trends, which indicates a lost momentum.
If the metric falls below zero, this can suggest that the rally has stalled, which has argued a risk-off approach.
External factors can deepen this decline. Long -term negativity can put Bitcoin under pressure to re -test the support levels, to activate panic sales and to activate a deeper bear cycle.