Bitcoin hit an 18-month low over the last three days. The coin is seeing its worst sell-off in 2022 as broader weakness in the market deepens. We have seen some recovery though but it’s still not enough to reverse the downward trend. BTC could bottom with one more sell-off. Here are some pointers:
- BTC managed to stay above $20,000 despite significant pressure.
- However, the piece has a very limited upward momentum.
- Once above $20,000 there is very little support below.
Where will BTC bottom?
Many analysts agree that the crypto correction we have seen in 2022 is far from over. The market has been quite weak, and for BTC the downtrend is inevitable. For now, the coin has shown a bit of resilience in the face of major pressure. But this will not last long.
In fact, when looking at the long-term chart patterns, there is very little support for BTC below $20,000. The coin could easily reach a low of $12,000 in this bearish cycle. However, we don’t think there is any downside below $12,000. Thus, a full BTC crush is not likely.
Also, once the coin finds sufficient support at $12,000, it will likely attract some dip buyers who want to cash in on the drop. Besides, the $12,000 price is not that far away from the current price. It could in fact come much sooner than we expect.
Where will Bitcoin go in the long term?
Right now, it’s very difficult to predict where the play will end up once 2022 is over. But it’s important to be prepared for a bumpy ride. It will be difficult for bitcoin to reach $50,000 this year.
This was one of the most optimistic predictions by most analysts. Instead, the coin’s fair value will likely stabilize around $36,000 or thereabout. But this will also be determined by how fast headwinds in the market ease.
