After every 30% pullback, Bitcoin gains an average of 153%

After every 30% pullback, Bitcoin gains an average of 153%

Recent data revealed that every time Bitcoin has seen a pullback of 30 percent or more, it was always followed by a sharp rally. The world’s largest cryptocurrency gains, on average, 153 percent after every price drop, meaning that there will still be plenty of buying opportunities even in the bull market.

Impending parabolic run or another pullback?

Following a year-long bear market, Bitcoin’s latest rally has left many traders expecting a major pullback. Analysts predicted that Bitcoin could drop to as low as $6,000 after it failed to break resistance at $8,300.

A slight move downward caused a frenzy among traders, as many thought it would be their last chance to get in on Bitcoin and profit from short term trading. However, Bitcoin managed to recover and climb back to around $8,000.

While some experts agree that a parabolic run is imminent, there has been major disagreement on whether or not a major pullback will precede the next bull run.

According to Josh Rager, a popular cryptocurrency analyst and trader, a pullback of at least 30 percent will come “eventually.” He believes that there will be several strong pullbacks before the world’s largest cryptocurrency reaches the next ATH.

Rager also noted that there were at least nine pullbacks in the last accumulation and uptrend cycle, so traders should jump onto those buying opportunities.

Analyst reveals that Bitcoin surges an average of 153% after every 30% pullback

The growing price of Bitcoin has discouraged many first-time traders looking for a quick profit, but Rager noted that there could be major gains in short-term trades.

He explained that with every pullback Bitcoin has seen an average gain of more than 153 percent.

When asked when he thought that a 30 or 40 percent pullback was coming, Rager said that he was originally eyeing the $9,200 to $9,600 area for it, but that he wasn’t sure whether these predictions were right.

Other have pointed out that Bitcoin’s drop from $8,400 to $6,400 could have been the correction the market was expecting, despite it being less than 30 percent.

While there doesn’t seem to be a consensus on whether Bitcoin has already had its pullback or is yet to come, what everyone can agree is the fact that cryptocurrencies move in cycles. Thomas Lee, the managing partner at Fundstrat Capital, said that Bitcoin generally generates most of its gains within 10 days out of a year.

Bitcoin managed to surpass the $8,000 in the early trading hours of May 24 and has recovered from yesterday’s 5 percent pullback.

Bitcoin | BTC

Updated: Nov 7 at 2:52 am UTC

Bitcoin, currently ranked #1 by market cap, is up 6.85% over the past 24 hours. BTC has a market cap of $152.59B with a 24 hour volume of $25.89B.

Chart by CryptoCompare

Bitcoin is up 6.85% over the past 24 hours.

Posted In: , Analysis, Price Watch
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Priyeshu Garg

Priyeshu Garg

Analyst @ CryptoSlate

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in computer science engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving transportation problems at his company (Ola), he can be found writing about the blockchain or roller skating with his friends.

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