Bitcoin price takes another hit, but have we reached the bottom?

Bitcoin's price has taken another hit as the digital asset continues its tumble down in value, but has the bottom been reached?

@JakConnorTT
Published Tue, Dec 14 2021 12:02 AM CST   |   Updated Thu, Jan 6 2022 10:36 PM CST

Bitcoin has taken another hit as Wall Street opened on December 13, sending the digital asset down by around 8.4%.

Bitcoin price takes another hit, but have we reached the bottom? 10 | TweakTown.com
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Recent trend analysis indicates that Bitcoin's price has continued to decrease for the last four consecutive weeks, putting the digital currency 30% down from its all-time high of $69,000 on November 10. On December 4, Bitcoin saw a sharp 21% decrease in value before bouncing to regain around half of its value, which then led it towards today's miniature crash of 8.4%.

So, is this the bottom, or is it possible Bitcoin can continue decreasing in value? Below, I outline all of the potential supports Bitcoin may fall to if it doesn't hold around the $45,000 mark. If support at $45,000 doesn't hold, it's likely that we will see a $40,000 Bitcoin before the end of the year. While that does sound depressing if you are currently holding any cryptocurrency, it isn't a usual thing to happen. Bitcoin makes large recorrections in price before it makes massive upward movements.

Bitcoin price takes another hit, but have we reached the bottom? 01 | TweakTown.com

Examples of this are the time periods; December 2020 to April 2021. During this period, Bitcoin rallied by around 220%, sending the price from the 2018 all-time high of $20,000 to around $64,000 (see above image).

Bitcoin price takes another hit, but have we reached the bottom? 02 | TweakTown.com

After reaching the $64,000 mark in April 2021, Bitcoin recorrected by about 50%, sending the price back down to the $30,000 mark.

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Following this dip of more than 50% from April to July, Bitcoin then rallied by 130% from July 24, to November 09, 2021 where it topped out at $69,000.

Taking into account the price action during the previous climbs and dips, it seems that the most recent dip is relatively standard for Bitcoin as the digital currency only recently created a new all-time high back in November. Considering the movements of the last all-time highs/price corrections outlined above, I believe that Bitcoin could recorrect as much as 50% (as it previously did in April 2021), which would bring its value down to around $35,000.

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After reaching this "new" bottom, the digital currency may begin a similar rally as it did in July, which sent the price by 130%+. If that plays out and Bitcoin performs as it has done in the past, it's possible that within the first half of 2022 a Bitcoin will be priced around the $80,000+ mark.

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Remember, it isn't unusual for Bitcoin to recorrect its price by 30%+.

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Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science and space news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

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