“Bitcoin is an echo bubble”, cryptocurrency cynics have cried since BTC hit $14,000 and collapsed in quick succession. These Bitcoin skeptics believe that this most recent uptrend and collapse in the cryptocurrency market is Bitcoin’s one last attempt at making it big, to allow early adopters and those in the know to cash out.
However, many analysts are convinced that as long as the fundamentals and long-term market structure stay intact, Bitcoin’s pullback is just a given until the true rally after the 2020 halving.
Have No Fear, the Pullback Will End
Bitcoin hasn’t had the best time since topping at $14,000 in late June. Since then, its price has bled out by some 42% over a three-month period, leading many to believe that it is only a matter of time before we see an unfortunate redux of 2018’s Crypto Winter.
But, Josh Rager, a prominent analyst, recently came out to reassure bulls. Rager noted that in 2013’s bull market, BTC “pulled back 75% over 89 days” prior to a 1,600 run-up later in that same year.
What he is saying is that Bitcoin’s current downtrend does not put BTC decidedly out of a bull market, and that investors can expect the uptrend to resume in the coming years.
Bitcoin 2013 market compared to 2019
2013: Bitcoin bull market pulled back 75% over 89 days before a 1600% run-up to new highs later in the year
2019: Bitcoin has currently retraced 42% over 91 days
Price can continue down but expect the bull trend to continue after pullback pic.twitter.com/gCrC65OJ9N
— Josh Rager 📈 (@Josh_Rager) September 28, 2019
Sure, this bull market pullback from $14,000 seems dramatic. But, in reality, it’s just par for the course in Bitcoin standards.
As reported by NewsBTC previously, ARK Invest’s in-house crypto analyst, Yassine Elmandjra, noted that BTC is currently at “similar levels of recovery as both 2011-2013 and 2015-2017 recovery periods”.
UPDATE: Day 284
Currently at similar levels of recovery as both 2011-2013 and 2015-2017 recovery periods. pic.twitter.com/ntedTt6vEl
— Yassine Elmandjra (@yassineARK) September 26, 2019
Indeed, as Elmandjra’s chart shows, Bitcoin has recovered to around 40% of its all-time high in 284 days, which is marginally better than what BTC accomplished during two previous cycles.
This implies that the cryptocurrency market isn’t in another bear market, despite what emotional traders and analysts may be spouting on Twitter.
Related Reading: Bitcoin Price Drop to $8,000 “Not a Bad Thing”; Here’s Why
Bitcoin Still Entrapped in Long-Term Bull Trend
Rager made the aforementioned statement with the assumption that Bitcoin is still in a macro bull trend. While some may call this shortsighted, he’s right — according to fundamentals and some price data anyway.
For instance, the hash rate of the leading blockchain network is now edging close to 100 exahashes per second. This is, according to Hans Hauge of Ikigai, a key sign that Bitcoin is fundamentally stronger than ever and not in a bear market.
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