After having started the year at $1000 in Jan 2017, bitcoin peaked at an astounding price of $20,000 dollars. The wild bull run of 2017, specifically what we witnessed in last quarter of the year, failed to continue and bitcoin has not been able to sustain its momentum in 2018.
The prices have more than halved. In fact, they even stooped down to $6000 dollar levels before rebounding and coming closer the 200-day SMA of $8000 at the time of writing this article.
Media houses and the so-called financial experts have jumped on the opportunity and declared the bubble is on its way to bursting, just like they had warned the people.
So Is bitcoins going to die?
Bitcoin has always been a volatile asset and the history of bitcoins price is proof, that bitcoin has always gone onto scale new all-time highs after every crash.
To put things into perspective, let us have a look at all the big crashes in the history of bitcoin and what happened, post them.
Disclaimer: This is by no means to be considered as investment advice. Delving into the history of financial commodities gives us a better perspective and allows us to make informed decisions, rather than falling into the FUD trap.
1. On September 2017, bitcoin crashed from $5000 to $2972. It took bitcoin merely 14 days to recovers from a 40% drop
2. On November 2013, bitcoin crashed from a high of $1163 to $152, an 87% drop. It took 411 days to recover from what can be called the darkest period in the history of bitcoins.
3. On April 2013, bitcoin crashed from $266 to $54, an 83% drop. It took bitcoin only three days to bounce back and touch the original price.
4. Between June and November of 2011, bitcoin crashed from $32 to $2, a 94% drop.
What we can infer from the history of Bitcoin crashes is that each time bitcoin value has depreciated, it has bounced back even stronger than before.
In recent times, bitcoin has been threatened by multiple factors like probable bans as well as public sentiment moving towards altcoins but, even today, bitcoins supremacy has prevailed with a market dominance of around 35%.
But will bitcoin recover to cross its ATH of $20000 and have a wild bull run like 2017 again?
Only time will tell.