The current crypto bear market is nothing new, as the market went through a similar collapse in 2018, when Bitcoin (BTC) dropped more than 70% of its value from all-time highs, Top Wall Street strategist Thomas Lee, co-founder of Fundstrat Global Advisors, claimed In an interview with CNBC.
Despite a dismal performance in 2022, he believes cryptocurrency will reemerge. He continues by saying that because it is cleansing the market of many undesirable actors, the current cryptocurrency winter is a crucial time for the sector, as the finest projects were developed during the previous bear market.
According to his statement:
It has been a horrific year for crypto. Nobody has made money in crypto in 2022. But it is not that different from 2018. If we look back at that crypto winter when Bitcoin went from $17,000 to something around $1,200, that was the time when some of the best projects were created.
Moreover, Thomas answered yes when asked if he still suggested purchasing Bitcoin. He made it clear that he did not believe that cryptocurrency is dead; instead, he was sure that the benefits of crypto would ensure its longevity.
He explains that they published about Bitcoin for the first time in 2017 and advised readers to invest 1% of their financial resources in it. Bitcoin was under $1,000 at the time. That position today would make up 40% of its portfolio without rebalancing.
Bitcoin BTC Price Analysis
The data from Coinmarketcap show that BTC is currently trading at $16,517.98, with a 0.03% gain in the last 24 hours and a loss of about 0.68% in the previous seven days. Additionally, its 24 hours trading volume is facing a significant decrease of about 25.07%.
According to the newest worst-case scenario forecast, Bitcoin (BTC) still runs the chance of falling below $7,000 during the current bear market. Trading platform DecenTrader shared targets for the bottom of the BTC price during its most recent Livestream show.
According to Filbfilb of Decentrader, a Bitcoin capitulation may cause BTC’s price to drop to a level twice as low as the bear market’s 2018 low.
Regarding a bidding zone of around $6,500, he indicated it in the worst situation and believed that would be where they ultimately ended up – like old-school rock-hard support.
Filbfilb asserted that unlikely at the moment, additional severe effects from the FTX collapse would eliminate bid support farther up the order book, creating the possibility of such a capitulation scenario.
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