Will Bitcoin Recover From These Price Drop?

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Bitcoin has dropped over 25% between November 14 and 24. In the last two years, this kind of drop has happened only a few times. Although this situation does not seem bullish for the cryptocurrency space, it could be a profitable moment to purchase Bitcoin, according to the Twitter user @OddStats. In a recent tweet, he uploaded a chart showing the last times that Bitcoin experienced such a hard drop.

Could Bitcoin Recover After this Drop?

In a recent tweet, @OddStats, a self-described retired finance professional, showed a Bitcoin chart with all the times that Bitcoin lost more than 11.9% in two days.

OddStats wrote:

“Bitcoin BTC/USD is down -11.9% in the past 2 days. Here’s a chart showing every time in the past two years where it has dropped at least that much in exactly 2 days. A lot of bottoms in there.”

On November 14, Bitcoin tumbled around 14% when its price moved down from $6,375 to $5,479, according to CoinMarketCap. According to this analysis made by OddStatus, it could be very profitable to buy this falling knife. In the future, Bitcoin could recover part of its price and achieve good profits in the near future.

Nevertheless, the Twitter user said that he does not know anything about the future. Another user asked whether he has long-term views about Bitcoin, but he preferred not to give a comment about it.

According to an article uploaded by MarketWatch, the last time that this drop occurred was between March 29-30. At that time, Bitcoin lost 13.8% of its price and reached $6,840 dollars. However, after this market drop, users that bought at that time were rewarded with a 46% increase in just five weeks. Bitcoin reached $10,000 later in May.

As MarketWatch shows, according to data from Bitfinex, the number of long contracts registered on the exchange increased. They moved from 23,000 to 27,000+ between November 13 and 15. This is the highest level recorded since October 11.

Bitcoin is currently being traded close to $5,600 dollars and it has a market capitalization of $97.31 billion dollars. In the last 24 hours, Bitcoin registered a price increase of over 1%. The only top 10 virtual currency registering losses in the last 24 hours is Bitcoin Cash (BCH). BCH is currently experiencing a very controversial upgrade.

 

Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.





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