Bitcoin price fallen? Corrections? To better understand what’s happening with BTC, Julián García, who works in data science at Quantia Capital, shared his findings on the subject with Cointelegraph in Spanish.
It is well known that cryptocurrency prices are highly volatile. This characteristic essentially makes them so attractive to investors who want high returns in the short term. However, this quality also carries an implicit risk. The price goes up at a dizzying pace, but when it goes down, it does so in the same way, ”commented Julián García.
He also recalled that a decline in Bitcoin price ended last Wednesday, which surprised a large part of investors. The price fell from just under $ 65,000 to $ 29,000 (-55%). After this correction, the price partially recovered and reached USD 43,000 (+ 48%).
Including the latter, From the beginning of 2013 until today, 46 falls of more than 25% have been recorded. In the definition to be used, a correction ends when the minimum value is reached without interruption with an increase of 30%.. You can also speak of recovery when it returns to the pre-fall level after a fall, ”García explained
He then presented the start, end and recovery values for each fall:
There are an average of 5.45 corrections per year.
The average intensity of the corrections was 41%.
He found that only 11% of the corrections have an intensity greater than 60% and 57% (24% + 33%) do not exceed a decrease of 40%.
He noted that nearly 50% of falls are completed from maximum to minimum in no more than a week.
And he made it clear that 70% of falls are recovered in less than six months.
In conclusion, García specified: “While it is not possible to give an accurate forecast of how much the Bitcoin price will rise in the short term, from the information presented, one can understand that the recent correction is part of the usual cycles of its movement and that the main cryptocurrency is performing well as will continue in recent yearsâ ????.
“After such a sharp decline, it is important not to get carried away by the fear of all market participants and to understand that we are likely facing a major buying opportunity,” he concluded.
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