Bitcoin has had a bearish start to 2022 as the index took a major nosedive to lower support levels. The index overall had the worst January since 2018. As a result, the hopes of a bullish new beginning to 2022 were dashed. The largest digital currency by market capitalization is now in a deep price pullback and no concrete floor has yet been achieved.
Bitcoin has had a major price pullback since early November 2021 when it posted a new all-time high of $69k. After enduring a sizeable price dip below $50k in December last month, some analysts were upbeat about the possibility of starting 2022 with a bang. All in all, the digital currency lost more than 20% in value during January alone.
The cryptocurrency started at $47.5k after a slow end to 2021 itself. It alternated around that value for the first few days but soon went in a downwards trajectory, first to around $42k and then made deeper inroads to $35k and below. The lowest valuation during this time was around $32.9k. Around the month’s close, Bitcoin has recovered slightly to $38k but overall, it is still down by quite a bit. All the investors who were hoping for a blow-off top scenario in which the index would have posted some gains in January.
It was the worst January performance by the digital currency in around four years. The worst January for Bitcoin was back in 2018 when the index dropped from around $13k to below $8k during this time which represents a loss of around 38%. So, while this January’s losses were significant in their own right, they still dwarf compared to January 2018’s. That is the only major silver lining to what has otherwise been a massive bearish month.
After the poor performance from the bulls in January, it seems like the debate around the possible early onset of the crypto winter aka bear season has gathered momentum. The less-than-ideal performance from the digital currency during the last two and half months means that analysts are puzzled about the immediate future of the cryptocurrency.
According to the bearish proponents of the Bitcoin’s worst January, the bull season’s high has already been achieved and the easy way forward is downwards. This means that the cryptocurrency, in their eyes, is not going to rise strongly to the new all-time highs close to $69k any time soon and we might have to wait for the next cycle to be able to do that. The bullish proponents believe that the digital currency still has a chance for a blow-off top but those voices are slowly disappearing from the market in the wake of the bearish onslaught of January 2022. The first few days of February are going to be absolutely crucial for determining the immediate future of the Bitcoin price index.
Read our detailed Bitcoin Price Analysis here!
Image by Margo Tanenbaum from Pixabay
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