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Bitcoin was hitting new all-time highs in October of 2021, but market technicals were bearish and suggesting an imminent correction.
April 2022 bitcoin was advancing higher; however, market technicals were still bearish, strongly hinting that the advance would not last.
Bitcoin is now in a free-fall and the next logical level to watch is around $20,000. In my 2022 bitcoin forecast, I projected a bottom at around $20,000. This is a logical area of support for bitcoin to form some type of consolidation/bottoming pattern.
My confidence that this will be “the bottom” is low given bitcoin is currently highly correlated with equity markets and thus trading just like any other risk asset. The economic headwinds that are adversely affecting equities are also affecting crypto. This is not a good sign given the odds of a recession are high.
Craig Thompson, ChFC
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