Is The 2022 Bitcoin Bottom In?

One of the great challenges when trading a bear market is to call a bottom. If you get it right, the profits could be great. If you get it wrong and re-enter too quickly during a fall, the consequences could be severe.

For stock markets back in 2009, still reeling from the great financial crash of 2007-2008, it has been widely acknowledged that then President Obama’s timed answer was one of the best bottom calls ever.

On March 3, 2009, answering a question from a reporter about the stock market, Obama said:

What you’re now seeing is profit-and-earnings ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it.

The absolute low for the S&P 500 of that recession came exactly three days later. As analysts have noted, Obama’s response would end up being one of the most perfectly timed market calls ever.

Strong hands

Looking at Bitcoin then, historical charts and patterns seem to suggest that recently a similar formation has taken place

Analysts at Glassnode claim that they are seeing a bottom formation play out at this very moment, writing that:

The case for Bitcoin bottom formation is one grounded in observable dominance of strong-hand investors, historically significant lows in numerous macro oscillators, and a strong confluence with prices hovering in striking distance of several bear-market pricing models.

However, can these HODLers hold the line?

Brett Munster at Blockforce Capital seems to believe Glassnode might be on to something, declaring that:

Unlike in 2018, when the demand for Bitcoin did drop during that price crash, there are no signs of adoption slowing today,” he said. “Despite the recent price crash, Bitcoin’s fundamentals are arguably stronger now than any time in its history.

Next few months will show whether or not we’ve seen the bottom already.