Bitcoin (BTC) hit a new ATH nearly 32 months, but shortly after hitting an all-time high (ATH) of $69,170, it fell sharply by almost 14% to below $60,000. And I think the bull market has started now, but after such a decline I will talk about why I think so below, first let's take a look at the price charts of Bitcoin.
Bitcoin (BTC) Weekly Chart
Bitcoin (BTC) is currently trading at $66,147. In the chart above, it can be seen that after Bitcoin hit $69,170, it fell sharply to below $60,000. Markets were in a state of euphoria before the Bitcoin price crashed, but within minutes everything turned around, leaving many investors worried and some even selling. Although sharp declines were regrettable, the post-peak decline was not unexpected. Fluctuations are quite normal in Bull Markets, if you have been in the crypto market for more than 5 years you have probably experienced such fluctuations or even more severe ones. For example, when the most recent bull market is reviewed, that is, when we examine the chart of 2021, we can see more extreme fluctuations.
Bitcoin (BTC) Daily Chart
Bitcoin's daily chart for 2021 clearly shows how harsh the volatility is in the bull market. Bitcoin hit all-time highs 6 times in 2021, and there was a sharp decline after hitting ATH almost every time. In short, volatility is pretty normal in bull markets, so the latest sharp decline did not worry me at all, on the contrary, it convinced me that the bull market had begun.
In my post 7 days ago, I stated that Bitcoin could fall sharply after hitting a new ATH; therefore, this sharp decline was not unexpected for me. If you want to take a look, here is the link to the post; Bitcoin (BTC) Cannot Be Stopped, Gaining Momentum Towards New ATH as It Surpasses $59,000. I have already mentioned in my post why such declines may occur, so I will not talk about the same things again, but I will still talk about something from a different perspective.
I think the bull market has started now and I think Bitcoin will hit a new ATH many times in 2024. Also, like in 2021, we will see crazy price movements this year and we may even see it reach higher levels. Bitcoin's price movements are non-linear and it is completely normal to experience significant price corrections after each rally, especially in bull markets. In fact, such volatility indicates that bull markets are climbing the wall of worry, and therefore there will be a lot of volatility up from the bull market.
Additionally, Bitcoin's last sharp decline resulted in liquidations of more than $1.1 billion. As far as I have observed, I think the last decline is generally due to the sales of miners, not the sales of institutional or individual investors, which was not actually unexpected. Although this selling pressure pushed the Bitcoin price below $60,000, it was quickly bought by the bulls and Bitcoin returned above $66,000, clearly showing Bitcoin's resilience. Although the current volatility is similar to the volatility in 2017 and 2021, Bitcoin is much stronger than then and is now more adopted by institutional and wealthy investors. Therefore, I think Bitcoin will hit higher levels, but as I said above, there will inevitably be significant price corrections and volatility, so it is better to be careful.
Thank you for reading
@rtonline
This is not investment advice, I talked about current developments and only my personal opinions. It is very difficult to know which direction the prices will go in the crypto market, I am just talking about my predictions and predictions may not come true. As with all money markets, anything can happen in the crypto market at any time, so please do your own research before investing.
