The price of Bitcoin has reached $17,000 again

After the collapse in the first decade of November, the price of Bitcoin is now coming back It is around $17,000.

To be fair, after the annual low peak on November 10th, this threshold was already crossed twice, but it returned below this indicator both on November 10th and 11th, and on the following days, on the 14th and 15th.

The current level is still below the previous annual minimum peak of $17,500 touched in June, suggesting that the current phase of difficulty is far from over.

Bitcoin Price: Trend of 2022

Though The price of Bitcoin had already begun to decline since late December 2021, it remained well above $35,000 by early May, which is 49% below its November 2021 all-time high of $69,000.

However, with The explosion of the Terra/Luna ecosystemthe price fell Under $30,000then fell back below $20,000 due to a failure in June Celsius, Voyager and 3AC.

It lateralized about $20,000 from then until early November, when a new collapse occurred. FTX bankruptcy.

Despite losing 27% of its value in just four days from November 5 to 9, the annual low of $15,500 recorded on November 10 was only 11% below the June low, which was 50% below the price in early May. .

So it lost 49% from January to early May, and another 50% from mid-May to mid-June. In contrast, the subsequent crash in November only reduced the annual low by 11%.

Current fix

Now that it has risen to $17,000, it is not at all surprising and is not a sufficient sign of health.

Instead, the fact that the November crash only lowered the annual minimum peak by 11% after two crashes of about 50% each suggests that the latest crash wasn’t actually as bad as the previous ones.

Then again, the previous two really came like a thunderbolt and took everyone by surprise. Instead, the collapse of FTX in November, while unexpected, came at a time of already clear distress, so fear levels were so high that they could not have increased much.

Indeed, at the beginning of May Index of fear and greed was in the negative, but not extreme, area, falling to low levels in mid-May. The lowest peak of this index was reached after mid-June, and after the FTX failure, it was mostly at the levels of early May.

So this year, the maximum fear in the Bitcoin market happened between May and June, and the current one, in addition to the problem caused by FTX, is only the long tail of what has happened so far this year.

Traditional markets

In contrast, it is interesting to note that, for example, the 2022 Nasdaq bear market has already been over for almost two months.

In fact, the Nasdaq’s lowest annual peak was in mid-October and has already recovered about 15% since then.

Although a new bullrun has never started, it seems that the big fears in traditional markets are behind us at this time. This by no means guarantees that the trend will reverse, but combined with the fact that the inflation problem in the US has stopped growing, it can at least bode well.

Yesterday, the chairman of the Fed himself announced that the monetary policy of the US central bank in December will be slightly restrictive, however, it may be.

Under these circumstances, it is possible that the cryptocurrency market may bottom out in the first ten days of November, unless there are other problems similar to the FTX failure.

In this regard, it cannot be ruled out that a small rebound in the price of bitcoin these days will be followed by other rebounds that could take it back to the $20,000 area, where it has been stuck for about five months since its crash. first half of June.

Moreover, Asian markets are also recovering, with Hong Kong’s Hang Seng Index already recovering 27% in a month.

Perhaps the overall bearishness of 2022 is over between October and November, and that could be good for crypto markets as well. However, there is no denying that prices may fall again if other dramatic and unexpected events occur.

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