Bitcoin is going through its most violent price correction since March 2020. Many a hodler is now asking himself where the journey is going. Is the bull market over?
After the bulls apparently dominated the first few months of this year, things have been going downhill for quite some time. At least since Elon Musk has been spreading contradicting information on his attitude towards Bitcoin on Twitter, the course has not really known what to do with itself. The course correction found its preliminary low point in the Flash Crash on May 19. In the meantime, however, the crypto key currency is again well above its temporary low of 31,000 US dollars (USD) and is at 42,000 USD by the editorial deadline.
One thing is clear: Bitcoin remains volatile – in both directions. Because until the beginning of May BTC only went uphill. There have never been six green candles on a monthly basis. A correction seemed simply overdue. The fact that it turned out so violently surprised even some die-hard hodlers. We reported.
If in doubt, it can be worthwhile to zoom out. If the bull market actually found its global top at USD 64,000, it would be by far the shortest of the three Bitcoin cycles.
In this case, the crypto currency No. 1 would have reached its highest level after only 340 days (starting point of the measurement is the halving). For comparison: Most recently, it took about 520 days for BTC to set its all-time high of just under USD 20,000 in December 2017. In addition, calculated as a percentage, it would have been the leanest bull market in the history of cryptocurrency. Of course, even at USD 64,000, 220 percent growth since the 2017 all-time high is still to be booked. For BTC, however, that would have been comparatively low growth.
Bitcoin bull market probably not over
No, the bull market is probably not over. Rather, the scene begins to reinterpret the dip as bullish. Because from a purely visual point of view (and it should be noted that this is not investment advice), the current bull market is more similar to that of 2013. After all, there was also a kind of intermediate plateau at USD 229 in the first major price increase for crypto currency No. 1.
Between December 2011 and April 2013, BTC rose from USD 13 to USD 229 – a price increase of 1,600 percent. In the meantime, the digital gold corrected to 75 USD. But then continued its climb until Bitcoin hit its all-time high of over $ 1,000. The similarities with this year’s bull market are obvious.
A look at Tether (USDT) also shows that the winds are turning north again. The largest US dollar stablecoin seems to be landing more and more on Bitcoin exchange accounts. A look at Glassnode reveals: The USDT transfer volume on May 20th was higher than it has been since the beginning of February.
Since stablecoins are mainly used as entry-level vehicles, the inflow could be a clear signal for more buying activity in the crypto market.