It's been a wild ride for bitcoin traders.

From Wednesday's high of more than $11,000, bitcoin has fallen to a low of $9,021.85 on Thursday, a roughly 20 percent drop. The crypotocurrency is in a period of extreme volatility after a strong showing over the Thanksgiving holiday weekend, when it set multiple all-time records.

Bitcoin last traded at $9,501.38 on Thursday, down 3.2 percent, according to CoinDesk.

But despite the cryptocurrency's sharp decline after hitting an all-time high, it could fall to near $7,000 without doing much damage on a technical basis, said Mark Newton, managing member of Newton Advisors.

"I would say that you've seen several important, pretty severe corrections to bitcoin over time and it's managed to come back," Newton told CNBC on Thursday. "From a percentage standpoint, the volatility isn't that different than what you've seen in August."

"Temporarily, you've seen a potential peak. It's gotten a bit overdone sentiment wise," he added.