First up is the bull case for Bitcoin. This idea suggests Bitcoin is in a similar spot to early 2017, where it experienced multiple price corrections on the way to what was then an all-time high of nearly $20,000.
But then there’s the bear case. What if the parallel isn’t with early 2017 but its final month, when the huge Bitcoin bubble burst? If that’s the case, then it’s all downhill from here, and we’re looking at another bear market for the next year or so.
So we spoke to the experts to see if there are any signs that point toward either theory being the most likely to play out. Here’s what they had to say.
Bitcoin bulls: This is like early 2017
A lot of Bitcoin watchers think Bitcoin is in price discovery mode again, like it was in early 2017.
Throughout 2017, Bitcoin made its way from $1,000 up to almost $20,000, but it wasn’t that easy. Along the way, Bitcoin’s price dropped by at least 30% on five separate occasions.
BTC retracements and dips during the 2017 bull run ranges around 30-40%. Expect the same during this bull run. Great time to buy on the lows! #BTC $BTC #bitcoin pic.twitter.com/Y1R0F7S9SA
— Moonlight (@g_guzardus) January 11, 2021
Despite these price corrections, Bitcoin rose on the way to what was then an all-time high of almost $20,000 by the end of 2017.
“Bitcoin between 2016 and 2017, when it more than 20x’d in price, had five corrections of over 30%, and so naturally what you’re going to get is these mini boom and bust cycles, but over a long period of time,” said Anthony Pompliano, host of popular Bitcoin podcast the Pomp Podcast, on CNBC.
While none of the corrections witnessed during 2017 are as drastic as Bitcoin falling by almost 30% in a single day—as it did earlier this week—they imply that all-time highs are paved on the road of several, potentially painful price corrections.
*BITCOIN BOUNCE BACK* Gains after a correction
-> 2017 Bull Market had 9 corrections. -> 153% average gain after a correction.
*WE ARE JUST GETTING STARTED* #Bitcoin #BTC #HODL #BullMarket pic.twitter.com/RuqyXmZ660
— Bitcoin Archive