Bitcoin has either already bottomed or this is the start of a 30% correction
After trading above $58k for a bit yesterday (Sunday), bitcoin took one on the chin today, falling as low as $48k briefly before bouncing.
Currently, it's trading around $53k.
The question on everyone's mind is likely whether that was it or whether this is the start of a larger correction, something more in the range of a 30% draw down like we've seen in the past.
Back in the 2016-2017 post halving bull market bitcoin saw 6 corrections of roughly 30%:
So far, during this cycle we've seen 2 thus far.
We saw one back in early September of last year that took the price down almost 30%, and then we saw another one in January that took the price down by about 30% as well.
If history were to repeat, we still have 4 more of these large 30% draw downs before we ultimately peak during this cycle.
Will that play out again?
I don't actually think we are going to see 6 pullbacks of roughly 30% during this cycle, though we certainly could.
With the amount of institutional involvement this time around, I think we will see a couple less as they help to stabilize the price on sell offs.
However, based on past data, there is a decent chance the current dip ends up being a 30% pullback.
We had the 100%+ move up from the lows after the last pullback like we normally see, which took the price from $29k to $58k.
I personally don't think it will go all the way down 30% and I think the lows are already in at $48k as there is strong support there like I mentioned here:
That being said, it certainly could, and history suggests that it just might be one of those.
In conclusion, history says that this probably turns into a 30% correction, however, @jrcornel says it's not going to be one of those because the weak hands are already out on this current dip and strong support was tested and proved strong indeed.
Who is going to win, history or @jrcornel?
Normally I stick with historical patterns, but this time may be different, dangerous words I know.
Stay informed my friends.