What could this rash in my genital area be?
The rash sounds like it might be fungal, especially if it is itchy. However, since it has been a month, you are starting to bleed, and it the rash is worse/spreading, you really should have it seen by a health care professional to make sure it gets the proper treatment.
I agree with the answer, but would like to add that it is possible to have an concurrent but secondary bacterial infection that can make things really red and itchy. The skin can become very fragile and bleed easily if scratched or rubbed. You should see a health profession as soon as possible. You may need antibiotics, antifungals, and ointments to help with skin itching and healing. In extreme cases, steroids may be used as well.