Cointime

Download App
iOS & Android

Bitcoin echoes 'late 2022' bear market bottom, K33 says

Validated Individual Expert

What to know:

  • Bitcoin is in a late-stage bear market phase similar to late 2022, K33 analyst Vetle Lunde said.
  • Trading activity and derivatives metrics show a thorough flush of speculative excess, while sentiment gauges such as the Crypto Fear and Greed Index have plunged to extreme fear levels.
  • Still, bitcoin is likely to stay rangebound between $60,000 and $75,000 for an extended period, creating a potentially attractive but patience-testing accumulation zone for long-term investors, Lunde said.

Bitcoin’s BTC$67,940.39 violent selloff earlier this month may be giving way to a late-stage bear market phase, but investors shouldn’t expect a quick recovery, according to Vetle Lunde, head of research at K33.

"Current conditions closely resemble late September and mid November 2022, periods near the bear market bottom that were followed by extended consolidation," he wrote.

At that time, bitcoin languished between $15,000 and $20,000, some 70% below its 2021 peak.

Now, bitcoin has settled into a quieter range between $65,000 and $70,000, and K33 Research’s regime model — which combines derivatives data, ETF flows, technical signals and macro signals — suggests the market is approaching a cyclical trough.

The quiet grind

One of the signs of the quiet consolidation period is that trading activity has dropped markedly, with speculative excess thoroughly flushed out.

Spot volumes fell 59% week-over-week, the K33 report noted. Meanwhile, perpetual futures open interest slid to a four-month low, and funding rates remained negative across the board.

That kind of cool-off period is typical after heavy liquidation cascades as market participants digest losses and reset positioning, Lunde said.

Meanwhile, U.S.-listed bitcoin ETFs have seen a record peak-to-trough decline in exposure of 103,113 BTC since early October. Even so, Lunde noted that, given BTC has retraced nearly 50%, more than 90% of the peak exposure in bitcoin terms remains.

Sentiment gauges also paint a bleak picture, with the "Crypto Fear and Greed" Index plunging to an all-time low of 5 last week and languishing below 10 for most of this past week.

Crypto Fear and Greed Index (Alternative.me)

Long-term value area

What does this all mean? Bitcoin is "likely near, or at, a global bottom but set for a prolonged consolidation between $60,000 and $75,000," according to Lunde. Similar historical regimes have delivered muted returns

Still, for investors with a long-term view, the current levels are attractive for accumulation, though patience may be required, he argued.

James Check, an onchain analyst and co-founder of Checkonchain, also noted that bitcoin's sideways periods are an opportunity for positioning.

He said that bitcoin, most of the time, "does nothing," and then tends to move in sharp repricing bursts rather than steady trends. Those explosive phases are often concentrated in a handful of trading days, frequently early in a bull cycle and again toward the later stages.

"It does nothing most of the time, and then sometimes it goes up 100% in a quarter, and if you're not there for that quarter, you kind of miss the whole run."

He cautioned investors against trying to perfectly time tops and bottoms as they often miss the initial surge.

In other words, prolonged consolidation may feel frustrating, but historically the market has rewarded patient positioning rather than nailing the timing.

Comments

All Comments

Recommended for you

  • Bitcoin ETF Ends Nine-Day Net Inflow with $148.7 Million Outflow

    On October 1, Farside Investors reported that the Bitcoin ETF experienced a net outflow of $148.7 million yesterday, ending a streak of nine consecutive trading days of net inflows. Additionally, the Ethereum ETF saw a net outflow of $59.6 million yesterday.

  • WTI Crude Oil Drops Over 1.00% Today, Currently at $88.55 per Barrel

    On October 1, WTI crude oil dropped over 1.00% today, currently priced at $88.55 per barrel.

  • Korean Stocks Rise Over 1%

    On October 1, the South Korean Composite Index expanded its gains to 1%, having previously dipped by 1%. In individual stocks, Samsung Electronics rose by 1.12%, and SK Hynix increased by 1.80%. In news, the Korea Customs Service released data on Thursday showing that the export amount for September, adjusted for working days, reached $120.9 billion, setting a new historical high with a year-on-year increase of 104.9%; the total chip exports in September surged by 263% compared to the same period last year, reaching a record $60.3 billion.

  • South Korea to Allow Analysts to Anonymously Publish Reports with 'Sell' Recommendations

    On October 1, South Korea will allow analysts to anonymously publish reports containing 'sell' recommendations.

  • Grayscale's Zcash ETF (ZCSH) Completes 3-for-1 Stock Split

    On October 1, GlobeNewswire reported that Grayscale's Zcash ETF (ticker ZCSH) has completed its previously announced 3-for-1 stock split. The split took effect before the market opened on September 30, with trading occurring on a post-split basis that day. Shareholders recorded as of the close on September 28 received 2 additional shares for every 1 share held, distributed after the close on September 29. This means that each share before the split became 3 shares after the split, with the net asset value (NAV) per share approximately reduced to one-third of its pre-split value, while the total investment value for shareholders remains unchanged. Post-split, ZCSH continues to trade on NYSE Arca, with the CUSIP remaining the same. The filing discloses that ZCSH is an ETP, a fund not registered under the Investment Company Act of 1940, and does not directly hold ZEC.

  • GMI Cloud Secures $668 Million in Funding with NVIDIA Participation

    On October 1, PR Newswire reported that AI-native cloud service provider GMI Cloud announced the completion of $668 million in financing, which includes $223 million in Series B equity financing and $445 million in credit facilities. The Series B round was led by ARCHIV, an AI and robotics firm based in San Francisco, with participation from NVIDIA, DSC Investment, Trend Micro, KB Investment, Kyobo Life, and KT. The credit facilities were led by China Trust Commercial Bank (CTBC). The company stated that its annual recurring revenue from contracts has surpassed $600 million, projected to exceed nine times that by the end of 2025, with its inference platform processing approximately 40 trillion tokens weekly. The funds will be used to expand GPU capacity in the United States, Taiwan, and other regions in the Asia-Pacific, with the valuation not disclosed.

  • ether.fi Responds to Ethereum Node Operator Security Incident: weETH Unexposed and Unaffected, Funds Secure

    On October 1, ether.fi stated that it has noted a security incident that occurred earlier with an Ethereum node operator; weETH has no exposure to this incident and remains unaffected, with all funds secure.

  • Fed's Kashkari: One More Rate Hike Expected This Year, Another in 2027

    On October 1, 2026 FOMC voting member and Minneapolis Fed President Kashkari stated that the inflation rate remains too high, currently around 3%, and the latest data has not changed this situation; despite facing shocks, the economy remains strong. He mentioned that the longer the economy stays strong, the more he questions the extent of monetary policy tightening, and he expects one more rate hike this year and another in 2027, hoping the Fed can reduce inflation through moderate actions.

  • Spot Silver Falls Below $60/Ounce for the First Time Since August 5

    On October 1, spot silver fell below $60 per ounce for the first time since August 5, declining by 0.72% during the day. (Jin Shi)

  • Whale Withdraws 2,000 ZEC from Binance, Main Wallet Balance Increases to Approximately $66.19 Million

    On October 1, according to on-chain tracking account Onchain Lens, a whale withdrew 2,000 ZEC (approximately $2.82 million) from Binance through two wallets, subsequently consolidating the funds into its main holding wallet. The main wallet now holds approximately $66.19 million in ZEC.