While many people only look at the maximum Bitcoin price for the year, another metric that can help you visualize its growth is the Bitcoin annual minimum price. This minimum grew 720% in 2021 compared to 2020, the highest number since 2014.
The entry of institutions, adoption of Bitcoin by El Salvador, billionaires defending the currency, among other important reasons were the main reasons that kept Bitcoin with strong support.
Now in 2022, the bears will have a big challenge to make Bitcoin to be traded below this mark, after all it was already tested in June 2021 and the Bitcoin market held firm the position.
720% growth in 2021
Although many critics hit Bitcoin when its price drops, it’s important to note that it’s always renewing its historic lows. In other words, its support is always growing over the years, a movement that is not usually as closely watched as the rallies.
While the annual minimum price in 2020 was US$3,850, this value rose to US$27,734 in 2021, still in January when it was at the beginning of its rise. A growth of 720% from 2020 to 2021 which ends up being the biggest since 2014.
In other words, this metric is just as important as looking at Bitcoin’s historical highs, which often come at times of euphoria. Therefore, the write-offs complement this analysis of BTC’s growth.
In fact, this support has fundamentals, after all 2021 was marked by the arrival of ETFs in both Brazil and the US, among other movements in the traditional financial market.
The entry of big names and companies into the BTC, not to mention El Salvador, the first country to adopt bitcoin as a legal currency, which are important facts when looking at the 2021 retrospective of digital currency.
Annual minimum price is great support
Unlike the highs offer great resistance for bulls, these bearish peaks are a great support for the price of Bitcoin and it is not so easy to break it.
In addition to the annual low of $27,734 set in January when the BTC was starting its climb to $69,000, it’s also worth noting that this zone held the BTC price in June, when it hit $28,600.
What can we expect for 2022, if a bear market happens, is that this will be the strongest support for Bitcoin. However, we expect its historic annual low to continue to grow, as it has consecutively for the past six years.