Bitcoin

Bitcoin’s dip to $29k may be a healthy correction based on historical trends

04/20/2023
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Quick Take

  • Bitcoin is down 3.5% today, going as low as $29,000. However, these liquidation cascades are normal in crypto, let alone emerging from a bear market.
  • Looking at the cost basis, the chart of previous bear markets, highlighted in purple, denotes max pain when the short-term holder realized price is below the realized price.
  • However, emerging from the depths of the bear market has been highlighted where the Bitcoin price has fallen, albeit liquidation cascades or selling into profit.
  • This cycle has been no different; again, Bitcoin price has rallied while we have seen multiple corrections, which can be deemed healthy for Bitcoin to continue.
Cost Basis: (Source: Glassnode)
Cost Basis: (Source: Glassnode)
Cost Basis: (Source: Glassnode)
Cost Basis: (Source: Glassnode)
Cost Basis: (Source: Glassnode)
Cost Basis: (Source: Glassnode)

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