They say a bad penny always turns up. While the saying may refer to an unwelcome guest, the same could be said for Bitcoin, according to recent analysis by CNBC. Based on chart evaluations, Bitcoin price has always increased substantially after dips greater than 20 percent.
The rise in Bitcoin prices for the four previous dips over 20 percent were substantial. On average, the cryptocurrency posted 61.5 percent gains in each cycle after substantial sell-offs. This astounding number has lead to an increased desire among insiders to ‘buy the dips’ – to purchase Bitcoin during the lows and realize the substantial gains as the price continues to rise.
Bulls and bears and Bitcoin, oh my!
The most recent drop over the weekend spurred on by the death of the SegWit2x hard fork proposal from the New York Agreement, appears to be no different. After more than 20 percent declines, the price has already recovered peaking in recent trading over $6,500. This response seems to indicate that the fundamentals underlying the recent increases in price are real.
Read more: CoinTelegraph