Bitcoin journey towards the investment and commercial mainstream has gathered pace this year, with major financial corporations and companies embracing the asset. Such interest helped push it to a record high just shy of $65,000 in April. Subsequently, and in typical fashion, Bitcoin displayed a major decline, as it shaved just over 50% of its value reaching as low as around $28,000 in just two months.
Now, we say we’re not surprised by these moves because such price swings have been a defining feature of Bitcoin throughout its near 13-year life. What may have come as a surprise, however, is how quickly Bitcoin turned it around, because in just four months, Bitcoin resurged to beat it’s previous all-time high by a couple of thousand dollars. The all-time-high now sits at around $67,000.
We say it’s not a surprise that Bitcoin made a new all-time-high because, well, from a technical perspective, a market that has a price structure like Bitcoin, any technical analyst should be able to take a glimpse of the chart and see its only poised for growth. The question, though, becomes, how many times is it going do it? i.e., make new highs, correct, find support, and continue higher.
On the other hand, the reason why the length of time may have come as a shock is because, typically, when Bitcoin displays an extensive corrective move, we transition into a bear market, and the previous one did not last a few of months. It lasted a couple of years. So, to see Bitcoin do this was new. Nonetheless, given the context of the aforementioned – financial corporations and companies embracing the asset – and the recent news of the bitcoin exchange-traded fund making Bitcoin available to most investors with a brokerage account, we’re in unprecedented times.
So where does Bitcoin go from here? Right now, it’s just hovering below it’s all-time-high, changing hands at around $61,500. In December 2020, when Bitcoin breached the previous all-time high created in 2017, we retraced slightly, and exploded higher shortly after. Will we do the same now? Only time will tell. Even if it does not, though, it does not mean that Bitcoin is not poised for future growth in value. It just means that we may see another extensive corrective move before we do so.