thecryptobasic.com
Bitcoin investors may experience negative prices as it seems the world’s largest cryptocurrency is yet to find its bottom.
The value of Bitcoin (BTC) has plummeted massively since it peaked at an all-time high (ATH) of $69,047 in November 2021. Bitcoin prices have fallen for several reasons, including rising inflation and the collapse of Terra ecosystem tokens.
While the price of BTC appears to be stable at the moment, many traders are still scared of putting more funds into the asset class, as they still cannot tell whether the digital currency has reached its bottom for this season’s bear market.
Earlier this month, BTC plunged to $17,000 after the Federal Reserve increased interest rates in a bid to curtail rising inflation.
Even though BTC touched $17,000, many people still believe that the asset class has yet to reach its bottom and have continued to enquire about the next Bitcoin bottom.
Bitcoin’s Past Performance Suggests New Bottom
Looking at Bitcoin’s previous cycle low from 2018 to 2021, it is evident that BTC’s next bottom could be sitting between $10,000 and $14,000.
Previous Bitcoin cycles:
2011: Highs Of $32 To Lows Of $2 (+90% drop)
2015: $1100 to $180 (+80% drop)
2017: $20k to $3200 (+80% drop)
2021: Now, from $69k, if Bitcoin follows the above pattern, the bottom can be found around $10-$14k by Q1 2023.
Recall that after Bitcoin surged to a high of $20,000 in 2017, the crypto asset fell to a low of $3,200 a year later before rallying again. Fast forward to 2020, when more people began to pick interest in the asset class, BTC’s value increased to nearly $28,000 and later spiked to a high of $69,000 in November 2021.
The Current State of Bitcoin
However, Bitcoin is currently a shadow of itself at the moment, as it continues to change hands for around $20,000. Cryptocurrency investors do not think the asset class has found its bottom.
A recent poll created by veteran futures trader Peter Brandt, which received over 9,000 responses, suggests that most respondents representing 54% of the total participants declared that Bitcoin is yet to find a bottom in this current bear season.
The development comes after Brandt noted that Bitcoin might dip to a low of $12,700 before the asset class rallies again.
The President of InTheMoneyStocks Gareth Soloway, CEO of asset management company DoubleLine Capital, Bond King Jeffery, and many others believe BTC can fall to $10K.
However, it is not clear when the asset class may find a new bottom. It is advisable that crypto investors should thread carefully this period in order to avoid suffering more losses in the event of more bearish price movements.