Lark Davis: Double-digit Drops Are Not Uncommon For Bitcoin

Lark Davis, a popular crypto market analyst and trader is not at all worried about Bitcoin and other crypto market deep correction.

Bitcoin saw a drop of nearly 20% in a single day from $52,900 after building up higher levels of support during its run-up from July, as the market was turning bullish again after months of sideways trading.

At the time of writing BTC trades at $46,630 with 0.73% profit on daily chart, according to CoinMarketCap.

In a recent video, Davis shares with his 427K YouTube subscribers that the sudden drop nothing out of ordinary for Bitcoin.

“Now, this 20% daily down candle, if you’re new around here, we really have to talk about this because what we’ve just seen is nothing out of the ordinary. It might sound crazy, it might seem scary if this is your first rodeo, but realistically, this is pretty common stuff for Bitcoin.”

Davis zooms out to view Bitcoin’s recent price history to point out that double-digit percentage pullbacks are a common occurrence. Just during 2021 alone, Bitcoin has witnessed six daily closes with at least 10% drawbacks so far in the year, the analyst says.

According to the trader, despite drastic drops like the one earlier this week doesn’t usually have much effect on the bull market trajectory in the long term, in the short term, these corrections can trigger further sell-offs.

$42,500 and $40,000, according to Davis, are crucial support levels for BTC, and warns that we may see more dips coming.

“Just gives you some perspective that…this is totally normal for the cryptocurrency markets, you should expect this stuff in a bull run. Volatility is the price you pay for performance.

And also, do not be surprised if we get some more downside. Now there’s a chance that that’s just a one-off, mega, epic dump candle and that things revert to their mean in the not-so-distant future. More often than not, these kinds of massive dumps come before we see more downside coming in.”