Bitcoin is Below $60k..... No $55k..... DON'T PANIC

The bulls displayed a valiant effort over the last couple months defending the $60k USD level and not allowing BTC to stay below it. However, it seems as the pressure grew too strong and the dam finally gave in.

The selling pressure grew too much once Mt. Gox had moved test repayments to exchanges (over 47,000 BTC) as well as the US Department of Justice and the German Government began selling their seized Bitcoin. This major selling created deep fear within the market which led to the largest amount of long liquidations seen since pre BTC Halving levels (April 12).

Whilst the current trend looks bearish and could be posed for further downside, let’s zoom out and take a look at prior bull runs and understand why this pullback may not be a cause for concern.

Bitcoin's Bull Run Pullback History (2017-2024)

A clearer view of the above chart can be found here: https://www.tradingview.com/x/Sz1knhey/

Pullbacks occurring during a bull market are not foreign concepts for BTC. Over the years we have seen many large pullbacks throughout a bull run. Over the last three bull runs BTC has experienced seven major pullbacks on its way to setting new all time highs and is currently in the process of having its eighth.

As seen on the chart above, 2017 experienced four pullbacks of over 33% on its way to creating a new all time high. If one was to buy during the fourth pullback in 2017, they would’ve seen over a 300% increase to the 2017 ATH in their position acquired during that dip.

2021 also saw two pullbacks of 21% and 30% which were prime opportunities to buy before BTC continued onto setting another ATH. Last year BTC went through a 30% pullback before continuing on and setting the current ATH of 73k (almost a 300% increase from the pullback in August 2023).

Assuming we are still in a bull market, this current pullback should be of no concern. This current pullback is currently 27% from the top, so it is safe to assume we are still in a bull run. A 30% pullback from the current top would put BTC at ~50k. Meaning, if BTC were to return to its ATH, it would be a 50% increase from that level and much more if BTC is to create new ATHs.

These pullbacks may be frightening for those who aren’t familiar with the space, yet, they are golden opportunities to buy the dip and dollar cost average into your BTC positions. Past cycles have demonstrated how buying these dips provided extraordinary returns to those who were brave enough to buy these pullbacks.

To take advantage of this dip, contact us at Stormrake to average into your BTC positions or buy your first lot of BTC, these opportunities don’t come around very often.

Written by Alexandar Artis

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