Bitcoin surged to a 2019 high at the end of May, which sets him for a correction. And, as an unwritten rule in crypto world, it could be sharp and at the same time great bitcoin buying opportunity.
Historically, the first pullback after a bull market starts is great time to buy on crypto market. We experienced it in 2012 and in 2015, when previous bulls were just starting. After bitcoin price increased to 7 USD in January 2012, correction appeared and bitcoin came back to 4 USD. Just that was a launch pad for bull market (2. time), sky rocketing bitcoin for the very first time into four-digit territory, hitting $1 200 by December 2013.
The same case happened in November 2015, when bitcoin reached new high of $500. But then it started to sell off by 40 %, hitting $300 in just seven days later. The third strong bull market lasted until december 2017, when bitcoin reached its all-time high of $20 000.
We don't know for sure whether history will repeat itself, although the bitcoin's fundamentals have certainly gained strength in last 12 months:
Bitcoin's usage is almost on 2017 all-time highs. It surpassed the 450 000 transactions/daily point just recently. Previous record was from mid december 2017, when bitcoin traded on $20 000.
Despite relatively high transaction volume, transaction fees are at their lowest levels since August 2017.
If we count that all, stronger price growth signalizes starting bull market. Improved bitcoin's fundamentals can help sustain the rise and the likelihood of a sharp correction gives investors good entry positions.