Has Bitcoin Bottomed?

The decline in the price of Bitcoin started around the middle of November last year. Day It surpassed $69,000 on November 10, 2021, before falling to $17,500 on June 18, 2022 over the next few months. 

Bitcoin: correction or further decline?

So it's been over a month since the price dropped below the $18,000 mark, all the while was around $20,000.

Something similar already happened in late January and early May, with the price no longer falling below the January lows it touched on the 24th of the month at $37,500, but there was a difference. In fact, it rose as high as $48,000 from March to April before falling back below $38,000. On the contrary, in the last month, until July 19, it never managed to climb above $23,000.

Thus, analyzing the chart, it appears that the bottom of this phase was touched on June 18 and since then a monthly lateralization phase has been initiated, during which it hovered around $20,000. As of Tuesday, that phase would appear to have ended as well, with the boundary around which the price oscillates rising to $22,000.

However, it is by no means certain that the $17,500 it touched on June 18 is also the lowest point we will touch in 2022.

What is certain is that the slump that began on May 5, when UST and Luna began to show the first problems, is over. In fact, during 2022 there were two periods during which the price collapsed and two periods during which it lateralized. But this does not rule out that a collapse may not come after the current phase of lateralization.

However, while the first phase of the collapse, which ended at the end of January, was a natural consequence of the deflation of the speculative bubble created in late 2021, the second collapse was caused by the implosion of the Terra ecosystem and its inevitable side effects.

Possible evolution of BTC price

In fact, there's one detail why we might think a collapse isn't out of the question at this point. Last year, three sharp corrections were recorded between May, June and July. This year, however, there were only two, as there was no significant drop in July. On the contrary, starting on July 13th, a small bullish phase was triggered, which indeed seems to indicate a change in trend.

There is also another detail that suggests another collapse could be triggered, possibly in the coming months. In both previous cases during a bear market Bitcoin price decreased by up to 85 % from previous highs, while during this third bear market after the hlaving, the maximum loss was "only" 74 %. So it is possible that the price could still fall below $11,000, or below $13,000, as some analysts are still saying.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.