Bitcoin’s bull market this month completes three years even though it has been trading below $50,000 for some time now. As 2021 comes to a close, trading data supports bitcoin bulls.
BTC Appreciated 2125% in Three Years
While year-end BTC/USD price does not meet the high expectations of its investors, it is quite higher than the price it was trading 18 months back. In March 2020, it returned briefly close to its cycle lows from the bull run it was maintaining since December 2018. During that time, BTC had dropped to $3100, its lowest point. It is unlikely to see that low ever again. On December 15 in 2018, bitcoin had ended one year of a downward trend from a maximum high of close to $20,000. BTC has given its investors 2125% gains if the peak of $69,000 it achieved this year is taken in this calculation.
Unlikely to Return to Its Low of $20,000
Most market participants are unlikely to see BTC go back to $20,000. Analysts do not discount that BTC may drop significantly in the short term. This could be in the form of a leverage cascade which happens when excessive speculation is removed from the cryptocurrency market. BTC’s support level hovers at $40,000. If it breaches that point, the BTC/USD price will challenge the dip witnessed in May’s short-term rout. The maximum difficulty can be seen if it starts running toward $60,000.
The bear market participants who have held onto their bitcoin investments for long have not lost big time in the recent downturns. Those holding BTC patiently for long have been rewarded during this time with more than 2000% gains
