When will the bitcoin price bottom?
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
Bitcoin has experienced (3) major price drawdowns since its inception:
2011 📉 -93%
2015 📉 -84%
2018 📉 -83%
Here is an analysis of previous price drawdowns so you can gain a better understanding of what to expect in 2022 for the price of bitcoin.
2011
Bitcoin went through its first major price discovery in 2011 when it reached a local high of $30. Shortly after, the price fell by 93% to $2. It took nearly 160 days for the price to bottom from the local high.
2015
Bitcoin went through a second major boom and bust cycle from 2013-2015. After declining 84% from its peak, many claimed bitcoin was dead. It took over 400+ days for the price to bottom from the highs during this cycle.
2018
The last major cycle came in the 2017-2018 era. After reaching an all-time high of ~$19,000, it took over 360+ days for the price to drop 83% to its bottom around $3,250.
2022 Bottom?
At a price of $16,000 per bitcoin in November 2022, the price has dropped over 77% from its high in November 2021. It has been exactly 379 days since then and Bitcoin is pushing towards lower prices. Nobody knows when the price of bitcoin will bottom, however, historical patterns show we are nearing the very bottom in terms of percentage drop and days since the last all time high.
I would not be surprised if Bitcoin took one more leg down and bottom out around $7,000 in the next few months. A 90% drop is a once in a multi-year opportunity to stack cheap bitcoin.
Happy Monday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
