The infamous cryptocurrency was trading at $A23,502 at 4.50pm AEDT, but hit an overnight low of $A22,482.
“Volatility is really baked into the cake when it comes to bitcoin,” Mati Greenspan, founder of Quantum Economics, told a local media outlet.
“These types of sizeable corrections have occurred quite frequently in all of her major bull runs.
“It’s the market’s way of shaking out traders with weak hands or too much leverage.”
“We remain bullish as ever and still feel that a fresh all-time high is possible before Christmas,” Mr Greenspan said.