Weakest Four Quarter Performance In Bitcoin History

29.11.22 02:38 AM By Stormrake

This year has seen a lot of first for Bitcoin, not all of which have been a blessing. As we head into the final month of 2022, Bitcoin is set to deliver its weakest four quarter performance in its trading history. Those who have survived 2022 so far are set to become the most battle hardened Bitcoin investors.

The information contained here is for general information only. It should not be taken as constituting financial advice. Stormrake is not a financial adviser. You should consider seeking independent financial advice prior to making any personal investments.

Straight Red For 2022

As a crypto investor you probably don't need a reminder that this year has been one of the most brutal on record. The good news though, is that if you're still here, you have witnessed one of the most savage bear markets in digital asset history and are well prepared to survive whatever else may come.

To recap what we have seen so far, Crypto companies currently in bankruptcy proceedings:

Voyager

Celsius

BlockFi

Billions of dollars of industry capital has completely evaporated, taking with it VC money all the way down to everyday retail investors. The systematic failures of centralised entities, who levered up again and again with backdoor deals and negligent (arguably criminal) accounting practices has left crypto asset prices in a severe correction. We're witnessing a huge deleveraging event but as Bitcoin, Ethereum and DeFi keep trucking along, as designed and intended, we'll continue to see new innovation and exciting opportunities crop up.

In light of these centralised entities complete failures, we suggest you look into self-custody, you can get started by reading our article on the topic HERE.

Altcoin Watch: Chainlink

Interactive chart: click on image for higher resolution

Chainlink has come across our radar as their public staking is set to go live in mid December. The entire crypto market is completely starved of narratives right now and is quite beaten up from the FTX saga, so Chainlink coming along and staying true to their roadmap of releasing public staking will provide the crypto community a focus point. The narrative of on-chain supply decreasing as staking goes live plus being considered a "DeFi Blue Chip" should provide a very Merry Christmas for the LINK community.

The key level to reclaim to the upside will be $7.5 USD, should we close above this level on the daily chart then the next key level comes in at $7.89. Clearing the zone between $7.89 and $8.33 could have a retest of $8.99. To the downside, if we lose $6.84 then the next major level of support comes in at $6.29. The line in the sand is the double bottom low of 2022 coming in at $5.54, if this level is lost then the market could print significant new lows for the year.

BTC/USD key levels

Bitcoin dipped below the key level of $16,500 USD following a small liquidation cascade. We currently just trade below $16,500 which means a retest of $15,588 is on the cards, further material downside risks can take us to new lows for 2022 and support comes in at $14,444. For a move to the upside, we will need to see the market reclaim $16,500. Should we complete this reclaim the next major level of resistance comes in at $17,189, clearing this level will have us retesting $18,217. Worth noting, if we get back above $20,000, we can end the quarter in the green, it rests on the perma-bulls to make it happen.

ETH/USD key levels

Ethereum is once again testing $1,190 USD, this time by coming up from the downside. Should we reclaim $1,190, we are likely to see a move to $1,333. Closing above $1,333 could have us retesting $1,472 as a major level of resistance. To the downside, if we lose $1,071 which is also a local double bottom level, could have us quickly head to $1,000 even. Losing the round number level of $1,000 which is also quite a significant psychological level, will have us retest the major support level of $885, the 2022 low for Ethereum.

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.

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