Nearly every cryptocurrency in the market has experienced a major decrease in price lately, and perhaps the one that felt the effects the most was Bitcoin. Bitcoin is still the leader of the industry in terms of both price and market capitalization. However, after experiencing a drop of over several thousand dollars in price, some were left wondering whether this is the end for the bull run of the world’s largest cryptocurrency. On the other hand, PlanB seems to think that the dip in BTC price is not necessarily a strong and definitive indication that Bitcoin’s bullish run is indeed finished.
‘This is just an ordinary dip, and it has happened before, says PlanB
In the cryptocurrency industry, PlanB is perhaps best known for the Bitcoin S2F (Stock To Flow) model. Simply put, this model takes a look at BTC’s price whilst also considering the increase in scarcity and the halvings in order to project the price towards an upward path. The analyst is also known for coming up with various other types of models that are based on the same concept whilst simultaneously taking all of the different factors and aspects into consideration.
Coming back to the price, Bitcoin had managed to shatter all of its previous accomplishments when it had reached nearly $65,000 only ten days ago, on the 14th of April 2021. As is often the case with cryptocurrency, the price then fell drastically to around $47,500 just yesterday, signifying a sharp decline of approximately 26%. PlanB nevertheless insists that this is nothing out of the ordinary. The analyst stated that this sort of correction has occurred multiple times before and that this drop in price is also in line with the BTC bull cycles of the past.
PlanB backed up these claims via the inclusion of a chart that displayed BTC’s price and how it had been performing in the duration of the bull markets, which took place after each of the previous halvings. These halvings had previously taken place in 2012, 2016, and 2020 respectively. The bull markets had followed during the years of 2013, 2017, and then 2020-2021.
Cryptocurrencies are slowly getting back on track
It should be mentioned that as of the time of this writing, BTC’s price has managed to increase again, but it is still a far cry from its previous all-time high. The current price is just above $50,480, which is a 2.8% increase in the last 24-hour time span. Nevertheless, this price is significantly less than the amount that it was just over a week ago, where the digital asset’s price had gone above and beyond $60,000.
This has resulted in some renewed confidence for BTC holders, but others still remain hesitant to fully invest in it again. Still, Bitcoin, along with other cryptocurrencies such as ETH, XRP, ADA, and BNB, have all increased in price lately and so things might not be as bad as previously thought. Additionally, the fact that Bitcoin had suffered a 40% decrease in late 2017 before experiencing major gains shortly afterward is yet another reason why many still choose to invest in it despite the recent setbacks.