Coin Edition -
- According to Will Clemente, there will be an imminent correction in the price of Bitcoin.
- Clemente explained that Bitcoin price corrections create room for stronger foundations for eventual moves higher.
- Bitcoin had a 62.6% drawdown during the last bull run between 2019 and 2022.
According to Will Clemente, co-founder of Reflexivity Research, there will be an imminent correction in the price of Bitcoin. Clemente explained that the correction would be sharp and allow the market to shake off “greedy”, leveraged hands.
This price action recently has been awesome, but friendly reminder that there will be sharp corrections along the way as the market shakes off greedy leveraged longs. Can’t go wrong holding spot in cold storage. pic.twitter.com/JvWOE25bNi— Will (@WClementeIII) December 5, 2023
Using information from Glassnode, a blockchain data and intelligence platform, Clemente showed how price corrections have been a consistent trend in Bitcoin’s life cycle. He revealed that between the 2015 to 2018 cycle, Bitcoin made a 36% correction in the middle of the bull run. Similarly, the flagship crypto had a 62.6% drawdown during the last bull run between 2019 and 2022.
Despite being in its early stages, Clemente used Glassnode’s data to show that the current Bitcoin rally has so far experienced a maximum drawdown of 20.1%. He further explained that Bitcoin price corrections, especially during bull runs, create room for stronger foundations for eventual moves higher. According to him, Bitcoin volatility is a feature and not a bug. He noted that a Bitcoin price correction would not be surprising, considering that it has nearly doubled in the past two months without pullbacks.
Bitcoin price experienced a sharp drop in the early hours of today, losing over 7% in less than three hours, according to data from TradingView. The flagship crypto opened the trading day at $43,786 and rose slightly to $43,801 before tumbling to $40,659 in just a few hours.
Today’s pullback represents the most significant correction the pioneer cryptocurrency has experienced since the beginning of its current rally from around $25,000, which started in the middle of September. Bitcoin traded for $41,919 at the time of writing, reflecting an ongoing battle between the bears and the bulls.
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