Crypto Crash 2022: Where Is The Bottom for Bitcoin? (BTC-USD)

The article I wrote for Seeking Alpha on January, 7^th with the catchy title: Brace for Crypto Winter clearly made some people sad and it seems they felt I was a clown crypto whale awaiting cheap Bitcoin (BTC-USD) so I could hoover it up at the bottom. I have been blamed for crashing Bitcoin before (if you can believe it). However, I am no BTC orca just a red-nosed crypto porpoise.

But my prognostication seems to be bang on the nail.

This projection is still my roadmap of what happens next.

…we are getting there fast.

Here we are now on the 24^th of January 2022.

In a way some commentators are right, I am looking to buy lots of Bitcoin at the bottom and I will attempt to gauge it, but I will soften the entry with ‘dollar-cost averaging.’ I will kick this off at $20,000, but the bottom could easily be near $10,000. With my Nostradamus hat on, I ‘like’ $13000. However, there are no mandating crashes; they do what they do, and you have to ride that big wave and tack and pivot as it does its thing.

Where is the bottom of this crash?

You could argue it’s right here, right now, but I don’t buy it.

You have to be an optimist for that one. I’m expecting the following, and have been for some time:

Now the thing to remember about crashes is, you do not have to catch the bottom, you just need to catch the recovery and that very rarely comes fast. Often there are months before that happens, so whether it’s the bottom today or at $20k or $8K, you can let it pass then wait some more and wait and wait and snip away at it to build up a big position for the recovery.

This is how to trade crashes:

A ‘V rally’ is a rarity, and the recent Covid stock rally is a good example because it was an unnatural one pumped by the Federal Reserve and not by investor appetite. No one is likely to resurrect crypto in this way; it will have to repeat a similar agonising trough like its 2018 crash before it lifts off again. That is good news for anyone wishing to build a fat position and not get the entry too wrong.

Also remember, the really good tokens will still be building their business during these wintry months and their values will be crushed. They will have the huge percentage of recoveries when the crypto spring comes.

There will be a crypto spring.