The price of bitcoin (BTC) has been on an extended decline, most recently hitting a three-month low on May 17.
Many have blamed this dip on the recent Tweets of Tesla CEO Elon Musk. And while his social media activities may have had some effect on the price of bitcoin, others have realized the moves we’re seeing from BTC aren’t much different from those we’ve seen in the past.
Cryptocurrency trader and analyst @Rektcapital put things in perspective in a tweet shared on May 17. They compared BTC’s performance in 2021, specifically dips, corrections, and pullbacks, to those in 2017.
An abridged version of the tweet reads:
“In 2017, BTC had 12 dips between 10% to 25% deep and 6 major corrections 30% to 40% deep. That’s 18 BTC pullbacks in total. In 2021 so far, BTC had 6 dips (14% to 26%) and two major corrections (31% and 35%). Only 7 pullbacks in total so far.”
Bitcoin 2021 dips and corrections
BTC’s price hit its lowest 2021 point since February on May 17 when it reached $43,825. Continuing on the downward path it had been taking the previous week. But this fall from a height of over $59,000 on May 10, a decline of 22.5% according to data, is hardly inconsistent with other dips from previous bull cycles.
Major dips amid bull runs recorded between 2016 and 2018, for example, were 29% at best, and more consistently around 36-38% at worst. According to CoinGecko, at the time of press, BTC’s current position is only down by 26.6% across the past 30 days.
Meanwhile, this year, the world’s largest cryptocurrency has seen its share of consistent corrections as well. Following Jan. 8, when a then-all-time high of $42,100 was reached, there was a two-week correction. This culminated with BTC hitting a low point of just over $28,000, a correction of 31.3%
BTC hit its next all-time high of $58,321 on Feb. 8. A sharp decline followed, in which BTC saw a 26% drop in price. A relatively small correction happened in march after BTC reached $61,750. BTC followed this up with an 18% correction in the eleven days that followed.
True enough, BTC has struggled at moving higher since it hit its current all-time high on April 14, when it crossed the $64,800 mark. In fact, data indicates Bitcoin has failed to reclaim even the $60,000 level since falling below it on April 18. However, the dips and corrections we’re seeing, compared to those already seen this year and in previous cycles, are not out of the ordinary.