Bitcoin’s latest consolidation has left many wondering whether it was entering a bearish phase, but recent data from Messari Crypto showed that its short-lived break over $12,000 was a major milestone. Unlike ETH, XLM, XRP, BCH, and LTC, Bitcoin has only spent 63 days in its history above it’s Aug. 6 closing price.
Bitcoin consolidates after breaking through $12,000 mark
Being the world’s largest cryptocurrency, Bitcoin has the unique power to pull the entire crypto market out of a rut. However, it also has the unique ability to push that same market back into a bearish run. That’s why Bitcoin’s price fluctuations are often followed and measured more carefully than that of other cryptocurrencies — even a minor change in the coin’s value has the potential to fuel a sellout.
Many have seen last year’s crypto winter as detrimental to Bitcoin, as it lost more than 80 percent of its value from the peak it saw in December 2017. Not even its impressive recovery in 2019 managed to convince people that it was ever going to return to its all-time-high.
But, the last couple of times Bitcoin saw major breakthroughs, first pushing through the $8,000 resistance, and then passing $10,000, the market seemed to be getting its faith back. After breaking through the $12,000 mark, everybody seemed to be on the bull train, cheering for the coin’s return to greatness.
That’s why the coin’s retraction to $11,500, and then $11,200, came as such a hard blow. Many saw this as a clear sign that BTC was consolidating and that there was little chance of it crossing the $12,000 mark again.
The world’s largest crypto gearing up for something big
However, recent data sourced from Messari Crypto showed that Bitcoin’s retraction from $12,000 was actually a very frequent occurrence.
Ceteris Paribus, a Twitter profile focused on cryptocurrency analysis, shared a chart from Messari showing how many days have some of the largest cryptocurrencies spent above their Aug. 6 closing prices. Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Litecoin (LTC), EOS (EOS), Bitcoin Cash (BCH), Stellar (XLM), and Binance Coin (BNB) were all included in the chart.
— Ceteris Paribus (@ceterispar1bus) August 7, 2019
While almost all of these cryptocurrencies were thought to be recuperating from massive losses endured last year, the numbers painted a completely different picture. Stellar, the 11th largest coin by market cap, has spent 606 days above $0.077, its Aug. 6 closing price.
Ethereum also saw major losses, as the data showed that, since its inception in July 2015, the coin has spent 518 days above its Aug. 6 price of around $224. XRP and Bitcoin Cash followed closely, with each spending 516 and 510 days above their Aug. 6 prices, respectively.
Bitcoin, on the other hand, has only spent 63 days in its entire history above $12,000. Binance Coin spent 76 days above $27. However, it’s important to note that BNB has only been around for two years, while Bitcoin is just five months away from its 10th anniversary.
A Twitter user pointed out that when looking at the data in Australian dollars, Bitcoin has spent even fewer days above its current price — only 38.
In AUD terms, BTC has even spent lesser days above the current price – a mere 38 days.
This means that Aussie hodlers would be up if they had bought bitcoin in one of the 3,831 days out of Bitcoin's entire existence of 3869 days.
To put that into perspective, it's more than 99% https://t.co/sCEfDqqSnh
— ⚡☣️ vires_in_numeris (@VNumeris) August 7, 2019
But what does this mean for Bitcoin?
The data only goes to show that anybody who bought Bitcoin at any point in time except the 63 days mentioned in the chart, would have seen a return on their investment.