Bitcoin has plunged about 28 percent from the recent peak of $65,000 but would still need to fall another 28 percent to erase all 2021 gains. Will it happen anytime sooner?
Every so often, financial instruments take a tumble, sometimes of a material magnitude. There are several reasons behind the fall. But looking ahead, what will be the future scenarios matters the most.
Since 2020 low, Bitcoin had experience six corrections which range between 16-32%. We are considering deep dives more than 20%, which were recorded four times, including the recent ones. Here’s the chart of monthly downfall ranging from 8-38%.
Historical April evidence: I found it for you, now see it for yourself
As per the above historical chart, we have witnessed three monthly deceleration trends, with the current one logged the biggest fall of 9%. Finally, the six-month-long streak comes to an end.
Looking ahead, so far, thrice we had witnessed, the monthly performance was unfavorable in May month. Look at the below chart.
Interestingly only one time the price went down in April and May consecutively. Based on the available historical evidence, we have two probabilities for May 2021.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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