Bitcoin’s price experienced a treacherous week, topping off a nearly 20% drop since last week’s Fed meeting. This selldown has brought the market capital of the most popular cryptocurrency to its lowest level in almost a year. It also sets a new record for 2022, when it was at notably lower levels.
Will higher monthly support be possible with BTCUSD trading at $33,000 per coin?
Bitcoin’s Price Hits 2022 Lower: Is There a Bottom?
It is now down 32% on April 2022 highs and it has dropped 50% off its peak in 2021. Crypto investors have had a wild ride over the last year, with two distinct higher highs of $60,000.
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After the November EFT driven double-top, BTCUSD has fallen to a lower low for 2022. This puts at risk $29,800 in the 2020 low.
Bitcoin reached its lowest ever price in 2022.Source: BTCUSD at TradingView.com | Source: BTCUSD on TradingView.com
Is This How Deep? How deep can monthly support of $33,000 be sustained?
Lower lows and higher highs indicate a downtrend in time frames between daily and week. There are many timeframes that trends can vary, so it is possible to be optimistic.
Related Reading| Time Vs Price: Why This Bitcoin Correction Was The Most Painful Yet
The bull market structure for monthly timeframes is intact at the moment. A double bottom that is above the monthly resistance level could occur and lead to a lower low.
Now, monthly support is being tested again and should hold. A larger plunge may still be in the works.Source: BTCUSD tradingview.com | Source: BTCUSD on TradingView.com
Due to tight correlations with tech stocks and skyrocketing inflation, Bitcoin suffered a significant drop over the past year. The Crypto Fear & Greed Index has reached extreme fear and sentiment is the most bearish in recent memory.
Even though the prospects are grim, many of the best-known and most successful investors advocate buying even when there is fear. Are you ready for this?
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Featured image taken from iStockPhoto. Charts taken from TradingView.com
