In previous bull market cycles, there has been a meSPAM BANble correction before a rally at the end of the year — and if history rhymes it could be on the cards again.
We’ve certainly experienced the correction: Bitcoin hit an all-time high of around $69K on Nov. 10 and has retreated around 17% to current levels.
Some mainstream media outlets such as Forbes have taken the view the current pullback has plunged markets back into bearish territory with the rather salacious headline: “Did Bitcoin Enter A Bear Market After Falling 20% From Its ATH?” on a Nov. 30 article.
But November's dip was actually the weakest correction of 2021, overshadowed by Bitcoin’s whopping 53.4% correction over three months between April and July. The most recent correction in September was the second deepest, reaching 37% from April's ATH.
In its Nov. 29 “Week Onchain” report, analytics provider Glassnode argued that the current correction is just “business as usual for Bitcoin hodlers” hinting that it may soon be over. It also confirmed that this current market correction is “actually the least severe in 2021.”
Barring a stock market plunge due to the Omicron variant situation becoming worse, some believe we may be on track for a Santa Claus rally. It's a term from the stock market when prices rise during the last 5 trading days in December and the first 2 trading days in January, however, it has also been noted in crypto markets in previous years and is often shorthand for price rises throughout December.
Last December, saw a 47% surge in BTC prices throughout the month and December in 2017 witnessed an 80% pump to a new all-time high at the time. Both were in bull markets like today.
At the time of writing, BTC was trading at just over $57K so a Santa Claus rally similar to last year could see prices surge to top $80K before the year is out.
8848 Invest co-founder Nikita Rudenia is also confident about a Santa Claus rally commenting:
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