Bitcoin (BTCIt may have fallen by 28% in recent days but analysts have already put the scale of losses firmly into context.
As observed on January 12th by Nathaniel Whitmore, Host Podcast breakdownIn the period between 2016 and 2017 alone, there were a total of six corrections that were larger than the decline this week.
BTC price correction curves through 2017
The year 2017 is known among market participants as a record year in price action. In addition to its 1,000% annual gain, Bitcoin has seen many hurdles as it climbed to an all-time high of around $ 20,000.
“Fun fact: #bitcoin has 6 withdrawals greater than the 28% we recently recorded in the record 1000% + growth year for 2017,” Whittemore commented, citing a chart containing data from Travis Kling, CEO of Ikigai Crypto Asset Manager.
The BTC / USD pair fell from new highs of $ 42,000 to Just over $ 30,000In Bitcoin fluctuations, regular cash has returned from major financial sources and other critics. Later rebound to $ 36,700 by itself broke world records In speed, it, in turn, attracted allegations of market manipulation.
Business as usual for spoilers
However, for long-term investors, the events are not new, reverberating as they do with the surface-level behavior seen during other rallies.
“During previous cycles, #Bitcoin withdrawals in the 20% to 40% range took anywhere from a day to just over a month to find a bottom,” the Analytics Service Environmental Metrics on the chain Summarization With their comparison charts on Monday.
“If you’ve been waiting to take the plunge, this is a good place to pile up while you can.”
However, environmental measurements indicated that historically, only 15% of total Bitcoin price corrections exceeded the decline from $ 42,000.
Meanwhile, the popular industry figures reiterated that lower price levels were little more than a buying opportunity for enthusiastic investors.
“It’s hard to believe Bitcoin is up 10% annually so far for 2021 this morning at $ 32,000. But this is how it works. If you can’t handle the crazy volatility, manage that concern with the size of your position. Morning move as a buy opportunity. Great, “Preston Beach, co-founder of the Investor Podcast Network Commented.