Bitcoin Price Profits 153% on Average After 30% Drops, Buys Ahead: Analyst
Buy bitcoin when it dips to profit when it soars, says an analyst. | Source: Shutterstock
By CCN: Throughout the past three years, the bitcoin price has demonstrated relatively large pullbacks averaging 30 percent following a large upside rally.
$BTC 30%+ pullback coming?
Yes, eventually. If history repeats, there should be plenty of strong pullbacks on the way to next peak ATH
There were at least nine 30%+ pullbacks from last cycle accumulation & uptrend
Plenty of buying opportunities ahead, don’t let it shake you pic.twitter.com/fMnhKzlpA8
— Josh Rager 📈 (@Josh_Rager) May 22, 2019
Every pullback, however, was followed up with an average gain of more than 153 percent, as cryptocurrency trader Josh Rager explained.
“Reward of buying pullbacks Previously examined how Bitcoin often experienced 30%+ pullbacks during last uptrend But we didn’t discuss how buying these pullbacks can reap rewards. The average gain after a 30%+ pullback was over 153% profit before the next strong pullback,” said Rager.
While some investors expect bitcoin and the rest of the crypto market to retrace following a 100 percent year-to-date recovery, it is important to consider the historical performance of the dominant cryptocurrency.
Bitcoin moves by cycles
As said by many industry executives including former Coinbase CTO Balaji Srinivasan, bitcoin tends to move by cycles.
Thomas Lee, a co-founder at Funstrat Global, recently reported that bitcoin generally generates all of its performance within 10 days of any year, primarily because it is heavily driven by market cycles.
“Reminder that BTC generally generates all of its performance within 10D of any year.