June 24, 2021

From $65,000 to $42,000 in a Month: The Worst Bitcoin Correction During This Bull Run

2 min read

In the period of a month, bitcoin went from $65,000 to $42,000, which officially became the largest correction because the bull cycle started in October 2020. Up until now, it has taken the asset between four and five weeks to recover all losses and head towards a new high throughout previous similar developments. As such, the question stays if history will repeat itself again.

Worst 2020/2021 Bull Run Correction

Although it appears like a lifetime ago, it was just last October when the primary cryptocurrency dabbled with the $10,000 price. The majority of the crypto neighborhood believes this was the moment when the tables turned, and bitcoin finally entered its long-anticipated after-halving bull run.

The numbers definitely support this narrative as the possession’s worth increased by more than six-fold in the following months. This led to frequent all-time highs, with the current one being available in mid-April at approximately $65,000.

Nevertheless, the ever-volatile BTC nature struck again, but this time in the opposite instructions. The trajectory changed with some support from Tesla’s Elon Musk in the previous couple of days, and bitcoin lost over $23,000 of worth ever since. This resulted in plummeting to a three-month bottom of $42,200 earlier today.

Popular trader Peter Brandt, who has actually been advocating for an upcoming high correction for months, highlighted this statistic. It’s in fact the largest retracement in the continuous bull run with a 35% decline (as of the bottom on May 17th).

Bitcoin Bull Market Corrections. Source: Twitter
Bitcoin Bull Market Corrections. Source: Twitter The previous ones saw the price dump by 31.6 %from mid-January to mid-February, 26.3% in March, and 18.6% in April.

It’s worth pointing out the mid-March 2020 cost drop when bitcoin lost 50% of its worth in a day during the COVID-19-induced liquidity crisis. Nonetheless, it was prior to the halving, which is usually regarded as the catalyst for bull runs.

As the graph indicates, bitcoin is quite familiar with similar massive retracements amidst bull cycles. Throughout the previous one, there were eight such developments that saw the cost reduction by more than 30% in weeks.

Will Bitcoin See Another Top?

According to the graph, BTC’s rate recovered after each of the cost drops experienced in the existing run. Usually, it took the cryptocurrency between four and five weeks to gain back all declined and even chart a brand-new high.

This raises speculations about whether bitcoin could pull another bunny out of its hat now and do it once again. After all, this is “only” the fifth correction in this cycle, despite the fact that it’s the biggest one.

This might be somewhat difficult, according to on-chain information. As reported previously, some financiers have started to transfer large quantities of their coins onto exchanges, which could increase the selling pressure and bring additional declines in the short-term.

However, BTC’s fundamentals remain strong. Miners and long-lasting financiers decline to sell, organizations keep accumulating, and the network’s hash rate just recently reached a brand-new all-time high as well.