Key Points
- Bitcoin (BTC) can experience a significant dip and still maintain its bull market trajectory.
- Historical patterns suggest Bitcoin often experiences near 40% pullbacks during bull markets.
Despite a 10% dip in 24 hours, Bitcoin (BTC) can still maintain its bull market and historical performance. This is according to a recent price analysis of BTC/USD.
Bitcoin's Bull Market Pullbacks
The current bull run of Bitcoin remains intact, even amidst increased price volatility and 2021 all-time highs of $69,000. Longtime market participants agree that Bitcoin is still on the path to new macro highs.
Even if a deeper correction occurs from the current levels around $68,000, the bull market would still be intact. This is based on data from market analysis and charting platforms.
Upcoming Block Subsidy Halving
A pseudonymous trader known as Bags has drawn attention to the upcoming block subsidy halving. He compared it to previous halving cycles, which all experienced major price pullbacks of nearly 40% before flipping into price discovery.
Bags calculated that a 38% dip from Bitcoin's latest all-time highs would take the price down to $45.5K. When asked about the impact of inflows from U.S. spot Bitcoin exchange-traded funds (ETFs), Bags noted that each previous bull market had its own catalysts, but these did not prevent a drawdown.
Another trader and analyst, Rekt Capital, is also watching the price performance in relation to the halving. Despite Bitcoin hitting a new all-time high before its 2024 halving, he suggests that the timing is typical of bull market posturing.
Rekt Capital compared this year's activity with the last halving year in 2020. He warned that Bitcoin is about to enter the riskiest part of the pre-halving phase, which he termed the “danger zone.” He noted that historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving.
