If you’re breathlessly observing the stock market, you’re not alone! The massive fall of the market is apparent. In just a couple days, the price of bitcoin has fallen by more than 30% (specifically by more than $12 000). However, BTC is holding up quite well, in comparison Netflix has decreased by more than 75%. However, it's known that the crypto market has a recurring cyclical pattern.
Let’s take a further look at the 2020 and 2021 charts and analyse BTC trends.
On May 8, 2021,bitcoin reached an approximate price of $59k and then fell to $49k, in just three days. In the next few days, further decreasing to $37,7k. The lowest point was around $29,8k on July 20, 2021. Around the same dates last year, we observed BTC prices also falling. Some may say it’s a coincidence, but is it?
Let’s have a look at the Spring 2020 graph to observe BTC price. As we see from the below graph, there was a significant decrease of almost 50% in March 2020, after which the price went back quickly, and in just 2 months, BTC was on a roll again.
If we compare the behaviour of BTC before each rise in the price, we notice that there is a slight “dip” before each surge. Take a look at the graphs for 2019, 2020 and 2021.
As Albert Einstein said “Look deep into nature, and then you will understand everything better”. The cycle of nature and its pattern surrounds our lives. The market and perhaps cryptocurrencies, since they are volatile assets, have a tendency to follow these patterns as well. Afterall, remember the basics of crypto trading: 1 BTC will always equal 1 BTC,its supply is limited. There is a possibility that after this type of a dip, by more than 30%, that BTC price will skyrocket up to $80k. At Banxe, we offer the easiest way to purchase almost any cryptocurrency you desire, making the process easy and fast.
Please remember that we don’t share any financial advice and urge you to do your own research before investing in any asset.