This week Bitcoin (BTC) price rallied to a new 3 year high at $18,965, leading investors to believe a new all-time high above $20,000 is on the cards.
While these are exciting times, data does show that some professional investors feel antsy about the price at these levels and the absence of retail FOMO has some calling for a sharp pullback.
Data shows Bitcoin hasn’t seen a drop larger than 5% since Sept. 4 and over the past 77 days the digital asset has gained 84%.The last time similar price action was observed was on Nov. 25, 2019.
Bitcoin price (USD) at Bitstamp. Source: TradingView
Back then, BTC made a 47% move from $6,900 to $10,150 by mid-February 2020, a 86 day sequence. Nevertheless, one should not jump to the conclusion that a substantial correction necessarily follows every movement without a 5% daily drop.
Evidence of such disparate expectations can be extracted from the futures contracts basis. Typically, the