Crypto investors are somewhat on tenterhooks now as bitcoin has been languishing in the $16,000 levels. The market took a huge fall before tumbling even further which has created anxiety among investors who fear that further bleeding is ahead.
Has bitcoin found its bottom? If not, then how long before bitcoin’s price hits its bottom? These are questions that are on the minds of analysts and traders at the moment. It’s never a clear answer but there are some likely outcomes that could take place in the weeks to come.
Here, we offer 3 likely scenarios for bitcoin’s price bottom. We examine how bitcoin has been performing in 2022, what factors are affecting momentum, and of course, 3 possibilities that seem more likely than others.
Has Bitcoin Hit its Bottom? Our Summary
There’s no doubt that the crypto market is undergoing a tough time. Bitcoin, despite being the most popular asset, has fallen just as hard as every other token. The forecast for the short-term future is not optimistic.
At this time, investors are hastily considering what the future price of bitcoin might be. This is a challenging task, given that the market is in such an uncertain climate and with regulatory actions set to take place in 2023. The breakdown of the Terra ecosystem and the FTX collapse has not done any favors to the legitimacy of the crypto market. These have spoilt trust and it is in this environment that bitcoin has to find its bottom.
The asset appears to be doing that just as we speak, but things are not so clear-cut. At first, bitcoin looked like it would hold at $20,000, and then it looked like it would hold at $18,000. But it fell past those support levels after a bit of resistance to a level not seen in two years.
As such, it is understandable that there is some hesitation regarding saying that bitcoin has found its bottom. Some believe it has its current price, while others say it could go to as low as $13,000 – or worse, $10,000.
There are some things to keep in mind as we discuss that bitcoin is finding its bottom, and in your own operations in the market:
- Bitcoin is down about 75% from its all-time high.
- The market cap of bitcoin is about $318 billion, far from its height of over $1 trillion at the market’s peak.
- Bitcoin’s price rise will depend on several factors, including market regulation and global macroeconomic trends.
- Volatility may also be high in the months to come.
As evidence of the aforementioned facts, let’s take a look at how bitcoin has performed in 2022.
How Has Bitcoin Performed in 2022?
A look at the chart above shows you how bitcoin has had a very tough year. The heights of 2021 are a distant memory at this point, and it’s more about finding a good support level to hold onto. It’s a strange occurrence, given that there have been many positive developments in terms of adoption and investment from major firms.
Of course, those investors are now more hesitant after the price drops that happened this year, starting with the collapse of the Terra ecosystem. This seismic event took place in April and brought bitcoin down from a healthy enough $46,000 to the $28,000 mark. Its market cap dropped from nearly $900 billion to about $400 billion.
Then came arguably the biggest event of the year – the collapse of FTX. This is an event that will go down in the crypto market’s history, FTX being such a big player in the market. It took bitcoin’s market cap down to $320 billion.
It is following these colossal incidents that bitcoin has to make a recovery. At its current price of around $16,200, some think that the bottom may have been found and that the only way is up.
However, it is not so cut and dry, and there could be further trouble for the market’s dominant asset. Liquidations in the derivatives market could further set the asset tumbling but for now it appears to be holding.
There are a few price scenarios that bitcoin could experience in the weeks and months to come. We detail these 3 bitcoin price possibilities in the next section.
3 Likely Price Scenarios for BTC
Remember, bitcoin and crypto in general are far from predictable.
Bitcoin’s price can go any which way, so don’t take these price predictions to be gospel. There is a lot of uncertainty in the market at the moment but, as we said, the long-term projections appear good. Take these price predictions for bitcoin as guidelines more than anything.
1. Bitcoin Has Found Its Bottom
The first price scenario is what crypto investors would hope for – bitcoin has found its bottom at its current price. There is no guarantee that this is the case as investors felt the same way bitcoin went down to $20,000 and $18,000. Furthermore, a short term project is hard to determine as the market is so volatile.
Many investors are in the red at the moment – including major institutional investors – but the fact that it is holding despite this is a sign that bitcoin has found its bottom. Certainly prominent individuals who hold bitcoin like Michael Saylor and Elon Musk will hope that this is the case with the asset.
As the dust from the FTX collapse settles and investors slowly add to their portfolio, we might see bitcoin lift itself out of this bottom. This will take some time, perhaps even months, but it is why investors need to keep a daily tab on how the asset is moving.
Optimists who take this view believe bitcoin can hit $20,000 by the end of the year, but the more pessimistic believe that it could head closer to $15,000.
2. Bitcoin Goes Down to $13,000 or $10,000
The next price scenario is one that might hit the market much more harshly and may even have effects outside the market. Some traders and analysts like Peter Brandt believe that in the worst case bitcoin might go down to $13,000 or even $10,000. The last time bitcoin was at these prices was in Q3 and Q4 2020.
Of course, this is just the bottom and medium-term prospects may be better. Bitcoin always bounces back and the current crash is far from the worst that it has experienced. Many investors are already taking to making predictions for 2023, but they should exercise some caution until the bottom has been found.
There are some reasons to think that a drop to $13,000 or further below. For one, bitcoin’s adoption rate is solid enough that its current holders are holding on with strong conviction. Some governments are also beginning to accept that bitcoin is a legitimate asset.
There is something to be hopeful about, however. Brandt said that once bitcoin is past its bottom, it could move to between $17,000 and $23,000. He also believes that Bitcoin will hit a new all-time high in 3 years. He goes even further to say that in 10 years it will become the ultimate store of value.
A Bitcoin halving is also expected in early 2024, which could trigger a bull run. At the end of 2023, bitcoin could very well reclaim values near its all-time high, and perhaps even $75,000.
3. Bitcoin Goes Down to $6000
It would take a series of catastrophic incidents to drop bitcoin below $10,000 – but let’s not be so arrogant to think that it is an impossibility. It’s the worst of the worst of the outcomes, and a price bitcoin last saw in the first half of 2020.
This is a very pessimistic view and one that is far more unlikely than the other price scenarios. Bitcoin seems to have made too much progress to go down this far. It is also gaining traction in terms of regulation, which has been more accommodating than restrictive.
It’s true that some regulatory changes could have a price impact, but so far this does not seem to be the case. Once regulation comes in, more institutions are likely to enter the market, which will only push the price of bitcoin up.
Furthermore, once regulation is in place, a spot bitcoin ETF is more likely. This has been applied for many times now, but the SEC has frequently rejected it.
If bitcoin goes down to $6,000, it’s much harder to offer a price estimate. There will be a lot of factors deciding how it goes and the timeframe will be much less certain.
Where to Buy Bitcoin
Bitcoin is the most widely available of all cryptocurrencies and can be bought on almost all platforms. It is the most widely used currency and is available in a variety of means. For example, you can also buy bitcoin through an ATM if there’s one around your area. Bitcoin ATMs are most popular in the United States and Canada, with a smattering across Canada.
Any centralized exchange will offer bitcoin and most decentralized exchanges a wrapped version of bitcoin. Beginners will want an exchange like Coinbase or Binance, or perhaps an established trading platform like eToro.
Has Bitcoin Hit Its Bottom? Our Analysis
It’s clear that assessing bitcoin’s bottom is a hard task. There’s no way we can be absolutely certain if the asset is resting at its bottom, and whether the only way is up. There are small but still notable reasons to think that it could go further down, which should make all investors think about how they proceed in the market.
The best case is that bitcoin has found its bottom. The worst case is that it drops to $10,000 or below. Predictions during volatile periods are fraught with risk, so know that the price can go both ways depending on the number of actors.
The only positive is that bitcoin is becoming more accepted by governments and institutions. This can only help the asset’s price.
Most of all, remember that bitcoin has always bounced back from its crashes. This is not even the worst crash and investors and analysts are optimistic about the long-term price of bitcoin.
Cryptos to Consider Buying Alongside Bitcoin
Bitcoin may be suffering at the moment, but that does not mean all assets are. There are a few that are standing out and attracting a lot of interest from investors during their presales and NFT launches.
Calvaria is a P2E card battler game with many features.
The Calvaria (RIA) project is one of the better NFT collections to come out lately because of what it offers. The project is focused on making the game as accessible as possible, thereby expanding the player base. It is a P2E card battler game that has accessibility as its main mantra. It also has striking artwork and even a story mode.
The game is set in the afterlife, with various factions vying for power. Unlike other games of its kind, there is a story mode for fans of single players to take part in. This is one of many features that make the game appealing to as many people as possible.
90% + sold in the 4th stage!
— Calvaria: Presale is Live! ✨ (@CalvariaP2E) November 23, 2022
Another feature that makes it accessible is the fact that it is available on both desktop and mobile devices. Most importantly, players don’t need to hold any crypto or even need a crypto wallet to get started. There are also both Play-to-Earn and Free-to-Play versions, with the latter only lacking some blockchain-based features.
The P2E version has benefits like the ability to receive royalty payments, wager on tournaments, and sell decks, cards, and upgrades. As for other features, Calvaria will have staking for the RIA token, a scholarship system, mini-games, and an in-game store.
RobotEra allows users to create their own social experiences.
RobotEra is a metaverse that has a futuristic robot theme. We all know that metaverses are all the rage and this is expected to continue in 2023. What separates RobotEra from the rest is the fact that it has a strong focus on social experiences and to that end, has many suitable features.
The metaverse is highly interactive, with players able to visit casinos, salons, and music concerts, among other places. Players can also create their own social experiences and robot companions. They don’t need any programming knowledge to create these and the companions can also be sold on the NFT marketplace. Furthermore, players can host events and issue tickets for them, which are priced in the native token TARO.
🚨 ANOTHER MAJOR MILESTONE ACHIEVED 🚨
🔥 $200,000 RAISED 🔥
⏰ WE ARE SELLING OUT FAST – BUY $TARO BEFORE THE PRICE INCREASES!
— RobotEra (@robotera_io) November 24, 2022
The presale for TARO is currently taking place, so those interested should gear up for what could be a quick sale. The tokens can be purchased in either USDT or ETH, with the minimum investment being 1,000 TARO. 1 TARO is priced at 0.020 USDT.
IMPT is launching a carbon credits platform to offset carbon footprints.
IMPT is a project that is building a carbon credits platform for various stakeholders, including brands, businesses, and individuals. The idea is to encourage them to reduce their carbon footprint. The team wants to build a Web3 platform that acts as a role model for how projects should be developing their platforms, and it sees helping the environment as its highest priority.
These stakeholders can buy, sell, or retire their carbon credits to help them reduce their impact. These carbon credits can be burnt, for which the burner receives an NFT that marks the occasion. The NFTs can then be held as a collectible or sold on an NFT marketplace like OpenSea or Rarible.
The IMPT tokens are used to buy carbon credits and they can be earned by participating in various activities in the ecosystem. There are three different ways in which stakeholders can earn carbon credits. Besides purchasing it with IMPT tokens, users can earn it from the shopping platform and businesses can set a portion of their sales margin towards it.
#IMPT is an easy solution for everyone who wants to contribute to sustainable development ♻️
— IMPT.io (@IMPT_token) November 24, 2022
The team also plans to bring brands onto the platform, which will help create a flourishing ecosystem that encourages participation. The entire focus of the project is to encourage everyone to do their bit to help the environment and for that, they need to bring as many entities on board to establish a social revolution.
IMPT will also have a shopping platform where users and brands work together to offset carbon footprints. IMPT plans to bring thousands of brands onto the platform. Users can make purchases from these brands through a shopping platform.
Each IMPT affiliate brand will decide the percentage of the sales margin that is allocated to the carbon credit program. Meanwhile, users will earn IMPT tokens for their purchases, which can be converted into carbon credits.
Users can also choose from hundreds of environmental initiatives to support and make contributions. The team will ensure that these projects are vetted and follow Global Certification Protocols.
Crypto investors need not panic about bitcoin’s price. The asset has always bounced back after a crash and, in fact, this latest crash is far from the worst it has experienced. With more retail investors and even institutions entering the market, there is more long-term potential in bitcoin than ever before.
Furthermore, bitcoin may have already found its bottom so there is no need to fret unnecessarily. Of course, this may not be the case and it could be that bitcoin will undergo one of the aforementioned price scenarios. However, with the long-term potential strong, investors can rest easy. Strategies like dollar-cost averaging can help in these situations.