Known for its volatility, Bitcoin (BTC) has fallen recently after weeks of soaring prices. Bitcoin has likely gathered its fair share of new buyers - some of whom may not be familiar with the asset's wild swings in price, according to a comment from Cheds, a crypto trader and analyst on Twitter. Cheds holds a CMT Level I certification, a benchmark that demonstrates knowledge of technical analysis.
Bitcoin surpassed its 2017 all-time high price in December 2020. In the weeks that followed, the asset doubled its previous high price of nearly $20,000, tapping just shy of $42,000 on Jan. 8, based on TradingView.com data. This is likely due in part to large players from traditional finance buying Bitcoin in the second half of 2020.
While bitcoin has historically been synonymous with significant price swings, its advances past $20,000 have opened the door to higher dollar oscillations.