Did Bitcoin Hit Rock Bottom? Here’s A Potential Timeline For Recovery

Did Bitcoin Hit Rock Bottom

Summary:

  • We just experienced/witnessed the 3rd largest Bitcoin drawdown of -65.81% from the highs.
  • In absolute dollars, this is the largest drawdown in Bitcoin history.
  • The current price rut also happens to be the slowest sell-off we have ever faced.
  • Bitcoin took on average 1.5x more days to recover to the previous highs than the NASDAQ Composite did during the tech boom.
  • Based on the “Recovery to Trough Ratio” of 1.69 and 111 days peak to trough for the current drawdown, it may take another 188 days from the low (not until mid-October 2018) before we might near the $20K level again.
  • Bitcoin drawdowns are sharper and faster than drawdowns during the NASDAQ tech bubble, but also take a shorter time before we reach a new peak.

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