2022 has been a tough year for crypto investors. Since November 2021, when Bitcoin recorded its All-time of $69k, the market has gradually slipped into a bear season. Given that the market enjoyed a relatively bullish run from 2019 to 2021, some market participants predicted a bearish 2022.
Typically, a complete market cycle lasts for 4 years, with 3 years bullish and about a year bearish. Indeed, for most of 2019 to 2021, the market remained bullish, so 2022’s downward spiral didn’t come as a surprise to some investors. However, given that the bear market has lasted for about 13 months, investors are anticipating green lights heading into 2023.
Crypto Market Roundup 2022
2022 opened with Bitcoin at about $46k, and recorded a high of $48k, and has recorded a yearly low somewhere in the $15k region.
Initially, many analysts predicted that Bitcoin’s price in the bear market wouldn’t go below its strong support zone of $30k. However, many unfortunate events this year have led to exceptional FUD that eliminated investor enthusiasm.
The first unfortunate event that caused huge FUD in the market was Terra USD’s depegging in May. This was the first strike of the sword that first pierced through the $40k support zone up until the $30k zone, and while it initially seemed like the last stop, Celcius, one of the largest crypto lending platforms, started freezing withdrawals on June 12, which sparked a new series of FUD, and subsequently, huge sell-offs that broke the $30k support, down to $17k.
Bitcoin appeared to be accumulating, and it looked like the bear market was ending; however, more FUD came in November as FTX became insolvent, causing many individual and corporate investors to lose huge funds, and Bitcoin has since recorded a new low in the $15k region.
Have We Seen The Last Bottom?
Indeed, we expected the last quarter of 2022 to usher us into a new bullish run; however, several FUDs have turned accumulation zones into new resistances as prices fall heavily.
One would have said many times that “it cannot get worse.” However, one of the biggest lessons of the 2022 bearish run is that “it could get worse.” Hopefully, we don’t see more FUDs heading into the new year, and with some good news in the first quarter of 2023, investors’ enthusiasm could be stimulated, and the market can move ahead again.
Simply put, we have seen the last bottom several times at $30k, $18k, and $15k, or so we thought, but unfortunate institutional events have delayed the market’s exit from the bear market. Hence, bullish institutional news and other trends that can gear up investor enthusiasm are needed to begin a new market cycle.
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