Bitcoin (BTC) may have fallen 28% in recent days, but analysts have already put the extent of the losses in context.
As noted on January 12 by Nathaniel Whittemore, host Breakdown Podcast, the period between 2016 and 2017 alone experienced a total of six corrections that were greater than this week’s utilization.
BTC price correction bends to 2017
2017 is famous among market participants as a record-breaking year for price action. In addition to 1,000% annual gains, Bitcoin saw several obstacles as it climbed to the very highest time of nearly $ 20,000.
“Funny fact: #bitcoin had 6 withdrawals larger than our recent -28% in the record setting 1
As BTC / USD fell from fresh record highs of $ 42,000 to just over $ 30,000, well-known criticism of Bitcoin’s volatility returned from mainstream financial sources and other critics. A subsequent rebound to $ 36,700, which in itself record speed, again attracted claims of market manipulation.
Business as usual for hodlers
For long-term investors, however, the events are nothing new that echo as they do the surface level behavior seen during other bull runs.
“Over the previous cycles, #Bitcoins exploits in the 20% to 40% range have taken anywhere from a day to just over a month to find a bottom,” Ecoinometrics analyzes on-chain analysis with its own comparative charts on Monday .
“If you were waiting for the dip, this is the occasion to accumulate while you can.”
Ecoinometrics nevertheless noted that historically, only about 15% of Bitcoin’s total price corrections have surpassed the drop from $ 42,000.
Popular industry figures, meanwhile, reiterated that lower price levels were little more than a buying opportunity for zealous investors.
“It’s hard to believe that Bitcoin has risen by 10% year to date in 2021 this morning to $ 32,000. But that’s how it works. If you can not handle the crazy volatility, manage that concern with your position size. Tomorrow’s move as a great buying opportunity, ”commented Preston Pysh, co-founder of The Investor’s Podcast Network.