The price of bitcoin (BTC) has plummeted from more than $60,000 to less than $50,000 in recent days. However, this does not necessarily mean that the asset bull run is over, according to noted crypto analyst PlanB.
Nothing goes up in a straight line, PlanB said in a tweet Friday.
Bitcoin has gone up for 6 months in a row, until this month. This is similar to the median decline we also saw in 2013 and 2017.
PlanB is known in the cryptocurrency industry for its stock-to-flow, or S2F, model in bitcoin. The model essentially predicts that the price of bitcoin will trend upward based on its half-life and increasing scarcity. He also built a number of other models around this concept, taking various aspects into account.
According to TradingView, bitcoin has surpassed its 2017 high of just under $65,000 in recent months. In the following days, the BTC fell until the 23rd. In April, the price dropped by another $47,500, or about 26%. However, according to PlanB’s tweet, this move does not extend beyond bitcoin’s previous bullish cycles.
On Friday, PlanB also tweeted a chart of bitcoin’s price action during the bull market that followed each of its previous halves. The halving took place in 2012, 2016 and 2020. Rising markets followed in 2013, 2017 and 2020/2021.
Nothing rises in a straight line. The #bitcoin has been rising for 6 months in a row, until this month. This looks like the middle of the decline we also saw in 2013 and 2017 pic.twitter.com/uaCn9GCHGI
– PlanB (@$100trillion) April 23, 2021
Previous bull markets have been accompanied by sharp price declines as the macroeconomic bull cycle strengthens. Judging by BLX BraveNewCoin’s chart on the TradingView platform, bitcoin crashed by about 75% between April and July 2013, during the 2013 bull run, following a notable price spike. After that plunge, bitcoin made significant gains before rebounding in 2014.
Bitcoin crashed by about 40% in September 2017 after a sharp rise, but hit new highs in the following months before falling into a bear market the following year.
bitcoin pricebitcoin newscrypto pullbackbitcoin momentumaltcoins expected to surgebitcoin q1 2021,People also search for,Privacy settings,How Search works,bitcoin price,bitcoin news,crypto pullback,bitcoin momentum,altcoins expected to surge,bitcoin q1 2021,ethereum price,bitcoin bubble