Bitcoin is Struggling to Regain Its Strength
Bitcoin which is the largest cryptocurrency in the world in terms of market capitalization reached its highest price against the U.S. dollar in April. Exactly 96 days ago the price of Bitcoin was $64,500. But one measure suggests that owners of Bitcoin may be waiting even longer for the next. In a series of tweets two days ago, analytics service Ecoinometrics revealed one very interesting fact. According to Ecoinometrics, 2021’s descent from all-time highs is the second-longest in Bitcoin bull market history.
As stated above, it’s been 96 days since BTC/USD hit $64,500 and the main correction phase began. Investors are impatient, and it is not hard to understand their feelings. But in spite of powerful fundamentals, its spot price action seems in no hurry to leave $30,000 behind.
At 55% below the highs as of July 18, the world’s largest cryptocurrency is also threatening to cause issues for price forecasting models, including the historically unparalleled stock-to-flow.
If history is a guide, nonetheless, this cryptocurrency can still go sideways for months before rising to beat its previous record. As analytic service notes, 2013 saw a period of 197 days between two all-time highs. This is one of the longest drawdowns it has had to cope with during a post-halving bull market. Interestingly, 96 days is still only half the duration of the drawdown of 2013.
Bitcoin and interesting facts
In 2013, BTC/USD reached a price floor 69% below its previous all-time high. Hence, the current market setup could also allow levels below $30,000. Moreover, it still can remain within historical norms.
More broadly, nevertheless, 2013 is now looking like the year most similar to price events in 2021. In terms of price trajectory, this correction also looks very similar to the one that happened in 2013.
A recent on-chain behavior painted $30,000 as more than just a psychological trading zone for the world’s most well-known cryptocurrencies. Despite all challenges, the vast majority of investors have to intention to get rid of Bitcoin. They are beginning to accumulate coins once again, including those who previously sold at current levels. Retail investors are drive Bitcoin bull markets, but when they stop buying, that is a bear market warning. Hopefully, retail investors are still buying Bitcoin, so there is no need to make hasty decisions.
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