- The ongoing Bitcoin price rally causes most traders to stop to glance at their portfolios and view their screens every minute to capture unrealized profit / loss. The excitement of the price rally is accompanied by a fear of losing unrealized profits.
The ongoing Bitcoin price rally causes most traders to stop to glance at their portfolios and view their screens every minute to capture unrealized profit / loss. The excitement of the price rally is accompanied by a fear of losing unrealized profits.
While the Bitcoin price fell in the last few trading sessions, a few wallets suffered an unrealized loss, unlike the first time the price surpassed the previous ATH and rose above the $ 20,000 level. When we compare the latest BTC drop with the previous ones, two interesting results stand out.
The most recent drop was 25% from the top ($ 41,405 on Jan 8 and $ 30,838 on Jan 11, taking into account CoinMarketCap data).
We hit bottom in 3 days.
This may not be a significant drop compared to 2017, thus leaving room for further drop in price. According to this chart prepared by Ecoinometrics, the 25% decrease is compared to the decreases observed during the second Bitcoin halving.
The week started with a drop, and Bitcoin is currently trading at $ 35,628, which is about $ 6,000 away from ATH above $ 41,000. While the price rally continues, it may have temporarily stopped. A 25 percent drop could be the biggest drop in the current market cycle, or even a trough.
BTC may never go below $ 30,000 again
According to AMBCrypto analysts, the probability of falling below $ 30,000 for Bitcoin is very low, and in this case there is no room for further declines. In fact, this recent decline may not be as dramatic as predicted compared to Black Thursday in March 2020, a period where the price is depreciated by more than 50% in a few hours.
The truth is that Bitcoin has a long history of retracement, and the last one is not that significant compared to the others. The decline of the bull run after 2017 was drastic, and BTC dropped below $ 3,000 after seeing an ATH of over $ 19,000.
Investors do not back down
The exciting part here is that the price drop does not seem to deter corporations or traders on spot exchanges from purchases. While the price of the cryptocurrency has not yet successfully violated its previous ATH again, this 25% drop may apply to the current phase of the bull run.
This is important for a derivative investor portfolio that is waiting to open a new long or short position, as many strategies plan not to be liquidated. Given the 25% drop, the next phase will likely accept $ 30,000 as a starting point.