While the price of Bitcoin (BTC) has corrected by more than 30% from its October record high, the asset is now posting its fourth consecutive week of declines. Although this is a first since July 2024, is it a reason to panic?
The price of Bitcoin (BTC) has fallen more than 30% from its ATH
On Sunday evening, the price of Bitcoin (BTC) closed its fourth consecutive weekly red candle, marking the first time this has happened since July 2024.
At the time, this correction followed a rally from $27,000 to $73,000, fueled by the euphoria surrounding spot Bitcoin ETFs. After a period of consolidation, prices then resumed their upward trend following Donald Trump’s election, and one year later, we are now seeing a 31% correction from October’s all-time high (ATH):
Weekly BTC price chart
During a major shift in market direction—such as the transition from a bull market to a bear market—the danger is often that we realize too late that the pivot has occurred, after a significant downtrend. In hindsight, however, it seems obvious that this is no longer a simple price correction, but indeed a new cycle.
Moreover, the opposite reasoning also applies to a transition from a bear market to a bull run.
While it is still possible that prices could rise again, there are a few important questions to consider in the event that your current positions are causing you stress. Despite all the uncertainty, you might, for example, ask yourself whether you are prepared to accept that prices could fall even further to unknown levels—and remain there for an extended period—before recovering to previous highs.
These periods of doubt are actually very formative and important for refining your risk management, and they also help distinguish investors who are in it for the long term—regardless of any corrections—from those who are taking on more risk than they should.
Here and there, we’re starting to see a few so-called experts who are quick to point the finger at even the slightest BTC correction as soon as it disrupts their own tolerance for volatility. Let’s remember that despite the criticism and its detractors, BTC has risen by more than 23,000% over the past 10 years and has always rebounded, despite the countless times its demise has been predicted.
Regardless of the short-term direction, this pattern is likely to repeat itself, just as we’re also seeing corrections among certain tech giants in the stock market—albeit to a lesser extent. For example, Amazon is down 14.66% from its all-time high (ATH) earlier this month, Microsoft is down 15% from its July ATH, NVIDIA is down 15.7% from its October ATH, and Meta is down 25% from its August ATH.
