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Bitcoin: the fall and bounce in the price of BTC
Bitcoin: the fall and bounce in the price of BTC
Bitcoin

Bitcoin: the fall and bounce in the price of BTC

By Marco Cavicchioli - 11 Jan 2021

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Between yesterday and today, there was a sudden collapse in the price of Bitcoin followed by a real bounce.

After touching an all-time high of nearly $42,000 on January 8th, the price lateralized for about two days around the $40,000 mark

However, yesterday it started to fall, first below $36,000, then below $34,000, and finally also below $33,000. 

In short, since the highs of three days ago, it has lost more than 20%

However, this drop was followed by a modest bounce, which momentarily brought it back above $36,000. Nevertheless, it is not certain that the drop has stopped, because the hesitant rebound could be followed by another decline.

According to Santiment on Twitter, the bounce could go on in grand style, along with that of the prices of many altcoins, so that the expected downward plunge seems to have been avoided for now. 

Incidentally, the price and trading volume graph shown by Santiment reveals that the volumes during this collapse were similar to the time when the price hit new all-time highs of $42,000 on January 8th, and this shows a clear and continuing interest in this asset even after it left the all-time highs. 

It is worth noting that a month ago the price was still below $20,000, so even after today’s crash, it was still 80% higher than thirty days ago. 

Looking back over the last three months, the price has grown by more than 200%, so today’s fall is of little concern to holders who bought BTC in the past few months with the intention of holding it for the long term.

Bitcoin, an already observed bounce

Such large and sudden movements are actually the norm – rather than the exception – for a still very volatile asset like bitcoin, and only shock less experienced investors or traders.

Moreover, the trend at the end of 2020 / beginning of 2021 is in some ways similar to the one observed at the end of 2016 / beginning of 2017, when a bull run allowed the price to return to the all-time highs of the time, only to retrace 30% and start rising again.

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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