Bitcoin’s Current Pullback – 2018 Style Crash Or Healthy Correction?

0

Last Updated on 19 May 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
View all posts

Bitcoin has known many ups and downs already in its past, even though the coin only has a history of 12 years or so. Those of us who’ve been around for a while, remember the widowmaker of corrections, the painful one of 2018 when Bitcoin lost some 80% from the top. That was gruesome for those of us HODLing.

This time round, people are wondering whether the size of the current correction is comparable to that legendary move.

At the time, the current selloff has put Bitcoin at some 40% below its latest all time high of $65k, which it reached about a month ago (on 14 April to be exact). With that, the current correction is the deepest we’ve seen since the bull market of 2020-2021 started, but in percentage terms it is not unlike those witnessed during the 2017 run-up in fact.

Hence, we have to ask, is the current phase a moment for a deeper dive down, or a buying opportunity? Depends on who you ask really.

Advertentie.

Stay away in May

First, there are those convinced that the top for 2021 is in and that it’s all downhill from now. If that is your conviction, then you are clearly on the side of CryptoWhale, whose tweets this Monday caused another Bitcoin drop. Of course, that person has been bearish for the whole of 2021, and for the year as a while, we’re still doing pretty well in terms of gains of course.

Then there are those who claim that the month of May should make you stay away as per the old stock market adage, but that you should remember to come back in September. Not sure if that’s the same for crypto markets of course, but a crash warning for May had been sounded before.

Panic sellers

Secondly, there are those convinced that the whales are simply shaking off first time buyers that are panic selling and that you should buy the dip. In any case, the fact that Bitcoin (earlier this week) regained as from the $42k level means it still gets stopped out of its dive at important technical levels, so this is also a possibility.

As always, the next few days will provide an indication as to who is right.

Michaël van de Poppe still thinks this is a correction and Madelon Vos is also saying that we’re still in a bull market.