The number one cryptocurrency by market capitalization fell on Tuesday after hitting a new all-time high of $69,170 earlier in the morning.
Bitcoin's weeks-long rally sparked by the approval of Bitcoin ETFs in January has seen Bitcoin surpass its all-time high in November 2021. Crypto Twitter was in a state of euphoria – before the price of Bitcoin went into free fall. .
According to CoinGecko, Bitcoin dropped 12 percent to $60,000 in five hours. At the time of this writing, it has bounced back to trade at $63,515. While frustrating, the post-peak dip isn't entirely unexpected.
When today's market volatility is compared to past all-time highs for Bitcoin, analysts say today's wild price moves are par for the course.
“This could be the beginning of a lot of variability as we go up,” Alex Thorne, head of galaxy research, told Decrypt.
“The common phrase is that bull markets have hit a wall of stress,” he continued. “When I look at 2017 and see eight declines of 25% or more on the way to all-time highs, that looks like a wall of stress to me, so I'm not concerned at all.”
As Thorn explained, In 2017 – from January 1 to December 17 up to a maximum of $20,000 – there were thirteen corrections of 12% or more. Twelve of these were 15% and eight were steeper than 25%. In a bull market, it's completely normal to have a significant price correction on the way out, Thorne said. These market movements are not linear.
It also highlighted price action after the start of the Covid-19 pandemic from March 2020 to April 14, 2021. There were also 13 corrections of 10% or more, seven of which were 15% or more.
Remember that in December 2020, BTC touched its previous all-time high [$20,000] Twice, then reversed and traded -11.3% in 15 days before actually breaking ATH,” Thorne tweeted. “[It’s] It could look similar here, and some consolidation would be healthy after a +62% YTD/+77% YTD low (Jan 23).
Remember in December. In the year 2020, BTC touched its previous high of ~$20k twice, then traded -11.3% in 15 days before actually breaking ATH
Could be similar here, and some consolidation would be healthy after +62% YTD/+77% YTD low (Jan 23) pic.twitter.com/mkywLKn4FC
— Alex Thorn (@intangiblecoins) March 5, 2024
As of the thorn, on December 14, 2017, Bitcoin reached $17,978, followed by another high of $19,423 on December 16.
In the year On November 7, 2021, Bitcoin hit its latest all-time high of $63,153, and on November 8, it hit another all-time high of $67,617.
“Bitcoin has a strong history of volatile price cycles and irregular bull markets,” he said.
Edited by Ryan Ozawa.
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