Current Bitcoin Price Corrections Show Similarities With 2017’s Price Crash
The crypto community worries about the recent price crash that wiped out more than $10,000 from its recently attained position. A few days before 2020 ended, the industry saw one of the most astonishing bull runs, which skyrocket Bitcoin alongside other coins in the industry. The digital asset grew so fast that people knew that a price crash was inevitable.
Since the dip, some traders opine that the bull run lost its momentum, leading to the rapid price fall. However, based on statistics, Bitcoin might not excessively correct as it did three years ago. The digital asset might grow after its correction. Recently, crypto enthusiasts blamed the price dip on BTC miners, which turns out to be false. Miners linked the fall to the asset’s traders’ selling pressure and not necessarily the currency mined.
The bull run just began
Looking at charts from the two years and corrected after hitting new highs shows that the market structure is parallel. As the price grew, people felt that charts overvalued the asset, meaning that a related fall might balance scales. But since the dip, most abandoned that notion and conclude that BTC will continue to fall till it returns to $17,000. Statistics show that the bull run has just begun and would not end soon, meaning that a price increase may occur.
Comparing the points where they both reached their all-time highs, 2017’s outlook seems parallel to 2021’s. In 2017, Bitcoin’s gain was equally fast, especially since it was valued at around $ 1100, before adding more than $1,000 to its value. Since its rapid rise, it corrected slightly, but still within the $2,000 range.
Now looking at 2020/2021, since BTC overcame its strongest resistance point in mid-December, it added more than $20,000 to its value under a month. When experts compare the gain, 2017’s percentage seems high, but 2021’s is much more significant. Interestingly, when Bitcoin dropped, it dropped at the exact rate it did three years ago after its all-time high then. Which made experts declare that the two years have an interesting similarity.
BTC hit new highs
In 2017, Bitcoin finally dropped below the $2000 range before it hit the unexpected all-time just within months in that year. Unfortunately, due to the present market structure, even with 2021’s dip, similar to three years ago, Bitcoin might not skyrocket in that manner. The digital asset faces new selling pressure, mainly by new investors who fear that the price could crash and profits affected.
Digital asset’s volatility is both an advantage and a disadvantage to experienced traders to understand the market cycle. Traders can predict Bitcoin’s movement, which would help them make relevant decisions to suit their pockets.
Other cryptocurrencies are also doing well, despite the dip that caused them to lose some of their December gains. Notwithstanding, new investors flood crypto exchanges to trade and hold these assets and participate in the new crypto trend. In 2017, traders filled the industry because of their fear of missing out, which 2020 similarly reports with high trading volumes.
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