Bitcoin’s 2020 Thanksgiving dip buyers now enjoy 5x gains, proving its long-term potential.
MACD signals bearish trends, while RSI stays bullish as Bitcoin trades near $93,447 today.
Bitcoin’s 2024 price rise contrasts with declining active addresses, hinting reduced activity.
Lark Davis, a crypto analyst, recently reminded the crypto community of Bitcoin’s infamous "Thanksgiving Day Massacre," a sharp 17% crash on November 26, 2020. In a tweet, Davis noted how Bitcoin dropped from $19,500 to $16,200 in a single day, causing widespread panic among investors.
https://twitter.com/TheCryptoLark/status/1861454423697822075
However, those who seized the opportunity to buy the dip have since seen a remarkable five-time return on their investment, proving Bitcoin's long-term potential despite its notorious volatility.
The 2020 Thanksgiving Day Massacre: A Snapshot
On November 26, 2020, Bitcoin opened at $17,586 and crashed to a session low of $16,318 before closing at $17,116, a decline of 2.83% on the day. The sharp drop was accompanied by bearish momentum, with large red candlesticks dominating the charts.
Source: X
External market factors and heightened sell-offs fueled this decline, as the RSI reached 30.74, bordering on oversold territory. Despite the intense volatility, the dip became a turning point, catalyzing the next phase of Bitcoin's 2020 bull run.
Bitcoin’s Current Performance: November 2024 Update
As of the press time, Bitcoin price trades at $93,447.42, marking a 1.67% increase over the past 24 hours, with an intraday range between $91,769.08 and $93,847.39. The cryptocurrency’s market capitalization is $1.85 trillion, while the 24-hour trading volume is $85.33 billion, reflecting a 3.76% decline in activity.
Source: CoinMarketCap
Notably, Bitcoin recently withdrew from the $100,000 zone, signaling potential profit-taking at these higher levels. However, the consistent formation of higher lows in recent months suggests that bullish momentum remains intact.
Indicators Offer Mixed Signals
Technical analysis reveals conflicting trends. The MACD shows bearish divergence, as the MACD line (5,540.94) has crossed below the signal line (6,114.94).
Source: TradingView
Moreover, the RSI at 64.13 remains firmly in bullish territory, indicating the potential for further upward movement if demand strengthens.
Active Address Momentum and Market Trends
According to data from Glassnode, Bitcoin’s "Active Address Momentum" chart shows a disparity between price and network activity. While Bitcoin’s price has surged in 2024, active address momentum has trended downward, suggesting reduced network participation.
Source: Glassnode
Historically, active address spikes have coincided with major bull runs, such as in 2017 and 2020. The current decline in momentum could indicate waning speculative interest, raising questions about the sustainability of recent price levels.
