Bitcoin plunged Tuesday morning, shortly after the No. 1 cryptocurrency by market capitalization hit an all-time high of $69,170.
The weeks-long rise in the price of Bitcoin, triggered by the approval of the Bitcoin ETF in January, has pushed Bitcoin past its all-time high set in November 2021. Cryptocurrency Twitter was in a state of euphoria before Bitcoin price went into free fall. .
Bitcoin plunged 12% in five hours to just over $60,000, according to CoinGecko. It has recovered somewhat to trade at $63,515 at the time of writing. While distressing, the post-peak decline was not entirely unexpected.
When comparing today’s market volatility to Bitcoin’s previous highs, analysts say today’s wild price swings are natural.
“This is likely the start of a lot of volatility as we move higher.” alex sonThe Galaxy research director said: decryption.
“The common expression is that bull markets are climbing a wall of worry,” he continued. “If you look at 2017 and see eight declines of 25% or more on the way to all-time highs, that seems like a wall of worry to me, so I’m not worried.”
According to Thorn, there were 13 corrections of more than 12% between January 1, 2017 and the all-time high of $20,000 on December 17. Twelve of them were 15%, and eight were steeper than 25%. In a bull market, it’s completely normal to experience significant price corrections on the rise, Thorn said. These market movements are not linear.
He also highlighted that there has been a surge in price fluctuations since the start of the COVID-19 pandemic, from March 2020 to April 14, 2021. There were also 13 revisions of more than 10%, seven of which were more than 15%.
“Remember that in December 2020, BTC clearly broke its ATH after hitting its previous all-time high ($20,000) twice before falling -11.3% in 15 days,” Thorn wrote on Twitter. “(It) is likely to look similar here, with some consolidation likely to be healthy after +62% YTD/+77% YTD low (Jan 23).”
Remember that in December. In 2020, BTC clearly broke its ATH after hitting previous highs of ~$20,000 twice before falling -11.3% over 15 days.
It’s likely to look similar here, with some consolidation likely to be healthy after +62% YTD/+77% YTD low (Jan 23). pic.twitter.com/mkywLKn4FC
— Alex Thorne (@intangiblecoins) March 5, 2024
As Thorn points out, Bitcoin reached $17,978 on December 14, 2017, and hit another high of $19,423 on December 16.
On November 7, 2021, Bitcoin hit its most recent all-time high of $63,153, and on November 8, it hit another all-time high of $67,617.
“Bitcoin has a solid history of volatile price cycles and non-linear bull markets,” he said.
Edited by Ryan Ozawa.
