The king of cryptocurrency Bitcoin (BTC) took a big dip yesterday, but data reveals that the current Bitcoin price dip is a part of the long-term BTC trends recorded over the years.
Bitcoin price is not the only factor that matters when it comes to the price movement and BTC trends. To begin with, the major factors include; hashrate, market capitalization, and the total volume on the previous day. Not to mention the long term price trends observed and recorded by data analysts and services.
Bitcoin price movement vs BTC trends
BTC trends, especially the long term trends often play a major role in the Bitcoin price movement. Especially, when the price is going sideways, traders and analysts turn to the long term charts to make some sense of the movement.
Bitcoin price is standing at the eight thousand three hundred and ninety-one dollars ($8391) mark at the time of writing. While on the six months price chart shows two different patterns where the head and shoulder pattern is more recent and more visible.
The head and shoulders pattern is usually followed by a dip. Therefore for any trader closely following the long-term trends, the price was already overdue to take a dip by almost fifteen days.
Bitcoin dip trend over the years
Analytics firm Messari.io released an interesting long-term BTC trend chart that explains that the current dip of over ten percent (10%) of its price is nothing new for the king of cryptocurrency. In fact, it has been used to of it even before the 2017 all-time-high.
As evident from the chart, the Bitcoin price took ten percent (10%) dive as many as seventeen (17) times in the year 2011. This was the time when Bitcoin stood at a mere seventeen dollars ($17) by the end of the year.
The following year, 2012 was a little more stable in terms of taking major dips with only six (6) major dips recorded throughout the year. The price, however, only got up by five dollars to the twenty-two dollars ($22.85) mark.
The year 2013 was perhaps the most interesting years of all time. With as many as seventeen (17) dips of ten percent (10%) each the price closed at seven hundred and ninety dollars ($790) at the end of the year.
Since 2013, Bitcoin price has been rather more stable in terms of large sudden dips. The year 2014 saw only four (4) dips, 2015 saw only six (6) dips and there was only one major dip in the year 2016.
In the year 2017, the year of all-time-high and the one preceding, i.e. 2018 Bitcoin price took eight (8), and nine (9) major dips respectively. However, the price has hit above thirteen thousand eight hundred dollars ($13800) in the year 2017 and above eleven thousand dollars ($11000) in the year 2018.
BTC trends chart further reveals that the Bitcoin price has taken only two major dips over ten percent (10%) in the current year and the price has hit the thirteen thousand dollars ($13000) once.
Where the skeptics would always be skeptics Bitcoin pundits are hopeful that the price would rebound in a nice and sleazy manner bringing hefty returns to the investors buying the current dip.