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Are we seeing Bitcoin drop below $10,000 for the last time?

The selling pressure bearing down on Bitcoin seemed to be exceptionally high, at the time of writing. Since the end of July, Bitcoin has now re-tested its support at $11,400-$11,200 more times than it has breached $12,000 on the charts. With every passing day, bullish momentum has lagged in terms of intensity and with altcoins […]

The selling pressure bearing down on Bitcoin seemed to be exceptionally high, at the time of writing. Since the end of July, Bitcoin has now re-tested its support at $11,400-$11,200 more times than it has breached $12,000 on the charts. With every passing day, bullish momentum has lagged in terms of intensity and with altcoins losing their propulsion as well, Bitcoin may possibly be heading under $11,000 very soon.

Many analysts have speculated that the probability of a re-test under $10,000 cannot be dismissed either. However, the present pullback might have some historical reasoning after all.

Bitcoin drawdowns and halving

According to a recent newsletter by Ecoinometrics, over the years, Bitcoin has experienced these periods between its highs, a period during which the price usually goes down for a while. Terming it a drawdown, the newsletter suggested that most of the huge and lengthy drawdowns have taken place during the second half of halving cycles.

The attached chart illustrates the drawdown periods in Bitcoin’s history and it was found that following a drawdown, Bitcoin has always noted a phase of exponential growth on the charts.

However, without getting into the part of exponential growth, it is to be noted that we are currently 100 days into the 3rd Bitcoin halving and perhaps heading into the 2nd phase of the cycle.

The importance of this particular period is that Bitcoin has always…

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