Bitcoin has dropped by 17% as compared to its ATH, which makes this the shallowest in 2021.
The previous bull cycles had seen huge corrections before a rally at the end, which historically, can be on the cards again.
Bitcoin had hit an all-time high of approximately $69,000 on the 10th of November and has now fallen by 17% to reach the present levels.
Media outlets like Forbes have considered this pullback to go back into bearish territories and have juicy headlines like, “Did Bitcoin Enter A Bear Market After Falling 20% From Its ATH?”
Bitcoin Took A Dip, Not As Deep As The Previous Ones
The Dip in November was the weakest in 2021, which was overshadowed by the massive 53.4% correction over 3 months (April-July). The second-deepest correction was in September, which reached 37% from the ATH observed in April.
Glassnode has argued that the current correction is just “business as usual for Bitcoin holders,” hinting that it may soon be over. It also confirmed that this current market correction is “actually the least severe in 2021.”
Last December saw a 47% jump in BTC prices throughout the month, and December 2017 observed an 80% push to a new ATH at the time. Both were in bull markets like today.
At the time of writing, BTC was trading at just over $57,000, so a Santa Claus rally similar to last year’s could see prices surge to top $80,000 before the year is out.
The hope of seeing a Santa Clause rally is on the cards, now. Such a jump at the end of the year can be attributed to several factors, like the spread of the holiday cheer and increasing liquidity due to bonuses received at Christmas.