Minority Mindset

Smart investments

Crypto News

Here’s a List of Bitcoin (BTC) Price Pullbacks Since the Bear Market Bottom

Apr 24, 2024

Based on my personal observation and experience of the cryptocurrency market, especially with Bitcoin (BTC), the past few years have been quite volatile. The bear market in 2022 was particularly challenging for investors as we saw numerous substantial pullbacks that caused significant losses. However, these declines also presented opportunities for savvy investors to accumulate more BTC at lower prices and maximize their returns during subsequent rallies.

After the bear market in 2022, bitcoin (BTC) has experienced significant downturns, decreasing by approximately 23% at times. Grasping the extent of these slides is crucial for investors, as they often lead to impressive rebound gains.

I’ve noticed that, according to a tweet from crypto trader and analyst Rekt Capital, investing in Bitcoin after a drop of around 20% could potentially yield profitable returns for investors once the cryptocurrency recovers and continues to rise.

Bitcoin’s Pullbacks in This Cycle

In 2022, Bitcoin endured significant challenges as it navigated through a harsh bear market. The downfall of TerraLuna’s ecosystem and the subsequent ripple effect led to approximately $40 billion in losses and forced several crypto companies into bankruptcy. Additionally, the sudden crash of FTX, one of the most prominent centralized exchanges at that time, caused Bitcoin’s price to plummet to $16,600 – a level last seen since November 2020.

I’ve observed that following the rock-bottom point of the bear market in 2022, Bitcoin experienced a significant drop of approximately 23% in February 2023. Then, between April and May of the same year, the front-runner cryptocurrency underwent yet another substantial decline, amounting to around 21%.

I’ve noticed that in July and September of 2023, Bitcoin took a significant hit, dropping by 22% in both months. This marked the last major decline before the end of the year. However, the cryptocurrency bounced back, rallying from late 2023 until mid-January 2024. The reason for this resurgence was the heightened excitement and anticipation surrounding the approval of the first wave of Bitcoin exchange-traded funds (ETFs) in the United States.

BTC Could Fall Another 18%

In the year 2024, I observed that Bitcoin took its initial significant dip of approximately 21%, shrinking from under it in January. This decline followed the U.S. regulatory approval for spot Bitcoin Exchange-Traded Funds (ETFs). The news of this authorization sparked speculation and led some investors to sell off their holdings, creating a sell-the-news event.

After a significant surge in ETF investments caused a rally for Bitcoin, resulting in a new all-time high of $73,700, the digital currency experienced a sharp decline in March, dropping by around 18% to reach $61,900. Since then, Bitcoin has had difficulty surpassing the $71,000 mark and has suffered an additional loss of approximately 18% this month.

Rekt Capital pointed out that as Bitcoin nears a potential 20% drop in value, it becomes an increasingly attractive purchase. The digital currency is presently hovering between $60,000 and $70,000, suggesting the possibility of an additional 18% decrease if it encounters rejection at the $70,000 resistance level. In simpler terms, according to Rekt Capital’s analysis, Bitcoin might experience a further price drop of around 18%, making it a more enticing option for investors when it approaches a 20% decline from its current value.

I’ve observed yet again that following a market dip approaching the -20% threshold, this cycle has consistently delivered noteworthy gains in the subsequent recovery. Therefore, when such a pullback arises once more, seizing the opportunity will be essential.

Read More

2024-04-25 19:52