Bitcoin price It saw a treacherous weekend, capping nearly a 20% loss since the Fed meeting last week. The sell-off has now taken the top cryptocurrency by market capitalization to its lowest point of the year, posting a major low for the first time in 2022.
With BTCUSD at $33,000 per coin, will the higher time frame monthly support hold?
Bitcoin Price Sets 2022 Low: Where’s the Bottom?
Bitcoin price is down 32% from its April 2022 high, and down 50% from its 2021 peak. In addition, the past year has been a great journey for crypto investors, as they pinpointed not one, but two separate highs above 60K. dollar.
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Since the EFT-led double top in November, the ongoing downtrend has pushed BTCUSD to its lowest level in 2022 and puts the 2021 low of $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 the monthly support stay at $33,000?
Lower bottoms and lower tops are a sign of a confirmed downtrend on the daily and weekly time frames. Trends can vary over multiple time frames, so don’t lose all hope.
Related reading | Time vs. Price: Why This Bitcoin Correction Was the Most Painful So Far
Currently, the bullish market structure on the monthly time frames remains intact. If BTCUSD manages to stay above the monthly resistance block, a double bottom may form and make 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 been battered over the past year due to its tight association with tech stocks, rising inflation, and rising federal interest rates. The Crypto Fear & Greed Indicator has reached the extreme and the sentiment is the most bearish in recent memory.
Although the outlook is bleak, some of the most well-known and successful investors are in favor of buying when others are in fear. Is this time now?
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Featured image from iStockPhoto, Charts from TradingView.com