Was $15,500 the 2022 Bitcoin Bottom?

Well, it has been quite the year for crypto so far. After we hit an all-time high of $68,000 in November last year we saw profit taking in December and January, followed by a first crypto collapse in May when Terra Luna’s stablecoin collapsed.

Terra’s crypto token first crashed from $120 to $0.02, a 99.9% correction in a so-called black swan event on May 11^th and 12^th. 99% of the drop was done in a 48 hours timespan.

Bitcoin then held steady at around $25,000 during the summer when anticipation for the Ethereum Merge, which took place half of September, brought some calm to nervous markets.

In November we saw the collapse of FTX, on of the biggest platforms around. As we’re about to enter the last month of the year 2022 and we’ve already touched the level of $15,500, we should ask whether this was the bottom.

Short term versus long term

Well, there seem to be two differentiating opinions to that question. The first comes from long term stock and crypto picker (and NSA whistleblower) Edward Snowden, who said a few weeks ago that Bitcoin once again look attractive. Last time he made that statement was in March of 2020, when the biggest crypto coin traded for $4,000 (and subsequently rose to $68,000).

The second one is more short term trading. It comes from Willy Woo, famed crypto analyst whose TA interests his 1 million followers tremendously.

#Bitcoin bottom is getting close under the Max Pain model.

Historically BTC price reaches macro cycle bottoms when 58%-61% of coins are underwater (orange).

Green shading adjusts for the coins locked up inside GBTC Trust. pic.twitter.com/haIcKlQ3M3

— Willy Woo (@woonomic) November 26, 2022

Willy believes we are indeed close to the ‘max pain’ level of Bitcoin and could still fall to $12,000.

Happy trading all.