Bitcoin price had a treacherous weekend, capping off what has been nearly a 20% loss since the Fed meeting last week. The selloff has now taken the top cryptocurrency by market cap to the lowest point all year, setting a significant lower low for the first time in 2022.
With BTCUSD at $33,000 per coin, will higher timeframe monthly support hold?
Bitcoin Price Sets 2022 Lower Low: Where Is The Bottom?
Bitcoin price is down 32% from April 2022 highs, and has shed 50% from its 2021 peak. The last year plus has been a rollercoaster of a ride for crypto investors, setting not one, but two separate higher highs above $60,000.
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Since the November EFT-driven double-top, the continued downtrend has taken BTCUSD to a lower low in 2022 and puts the 2021 low set around $29,800 at risk.
Bitcoin has touched the lowest price yet in all of 2022. | Source: BTCUSD on TradingView.com
How Deep Does This Go? Will Monthly Support At $33,000 Hold?
Lower lows and lower highs are a sign of a confirmed downtrend on timeframes between daily and weekly. Trends can differ on multiple timeframes, so not all hope is lost.
Related Reading | Time Vs Price: Why This Bitcoin Correction Was The Most Painful Yet
Currently, the bull market structure on monthly timeframes remains intact. If BTCUSD can stay above the monthly resistance block, a double bottom could form and put in a higher low.
Monthly support is now being retested and must hold or a larger plunge still waits. | Source: BTCUSD on TradingView.com
Bitcoin has taken a beating over the course of the last year due to a tight correlation with tech stocks, soaring inflation, and rising Fed interest rates. The Crypto Fear & Greed Index has reached extreme fear and sentiment is the most bearish in recent memory.
Although the outlook is bleak, some of the most well-known and successful investors ever advocate buying when others are in fear. Is now that time?
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Featured image from iStockPhoto, Charts from TradingView.com