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No Bitcoin (BTC) cycle has reached its peak without undergoing double-digit corrections, as pseudonymous trader @CryptoJelleNL has noted. All of them were spicy buy opportunities, but their patterns are changing cycle by cycle.
Bitcoin (BTC) dropping by 20-25% would open "buy-the-dip" opportunity
Bitcoin (BTC), the largest cryptocurrency, might see at least one double-digit correcton on its way to a new price high. Once it drops by 20-25%, an opportunity window opens for BTC bulls, as explained by a seasoned crypto investor who goes by @CryptoJelleNL on X.
Corrections are an essential part of a #Bitcoin bull market -- but with each passing cycle, the dips become shallower.
— Jelle (@CryptoJelleNL) March 1, 2024
This cycle, it looks like ±20-25% will be the sweet spot for dip-buying.
Your job is to be ready to take advantage when it comes. pic.twitter.com/xrI7iKfiPR
Such corrections are registered every cycle. However, as the market is getting more and more mature, the dropdowns become smaller.
To provide context, in the 2016-2017 cycle, BTC went through seven corrections that were very painful. They erased 30-45% of the Bitcoin (BTC) price each, with 32% as the average pullback.
The next cycle that pushed BTC toward its current all-time high (ATH) mark was far more forgiving for bulls: with five dropdowns, the average loss only reached 24%.
This cycle has only seen four major corrections so far, with an average pullback of 21%. As such, traders should be ready for at least one ugly red candle, data shows.
Bitcoin's (BTC) local high 10% lower than 2021 ATH
Should @CryptoJelleNL calculations be valid, the $46,000-$47,000 zone is the best one for Bitcoiners interested in "buy-the-dip" opportunities.
By press time, Bitcoin (BTC) is changing hands at $61,683 on major spot exchanges. In the last week, it added over 20% and peaked one step away from $64,000.
This mark is less than 10% below its all-time high registered on Nov. 10, 2021, at about $69,000.