Analyst Benjamin Cowen Says Evidence Suggests Bitcoin (BTC) Still Moves Lower Before New Bull Market
A extensively adopted crypto analyst says there’s proof that Bitcoin (BTC) might have a lot additional to drop earlier than sparking a recent bull run.
In a brand new video replace, outstanding crypto analyst Benjamin Cowen tells his 784,000 YouTube subscribers that the highest crypto asset by market cap nonetheless has the potential to dip to the $10,000-$12,000 vary earlier than we see the following crypto bull market.
Basing his evaluation on a sequence of technical, on-chain and sentiment-based indicators, Cowen says BTC is able to doubtlessly make one other low, identical to how Bitcoin created a brand new ground after plummeting under $18,000 in June final yr.
“There’s sufficient proof to recommend that [Bitcoin] might go decrease, so due to this fact I’m going to be open-minded to that potential final result, identical to I used to be again in the summertime when lots of people had been saying June was the underside. Lots of people are calling June the underside again then, and it wasn’t, proper.”
Based on Cowen, Bitcoin’s backside might doubtlessly even commerce across the $10,000 degree attributable to diminishing losses, an idea suggesting that BTC’s decline from peak to trough diminishes with every cycle.
Cowen signifies that the final thrice BTC witnessed a bear market, it dropped a minimum of 84% from its earlier peak.
“We might go right down to $10,000 or $12,000 and nonetheless be with diminishing losses. For us to go down 84% from the height, now we have to go under $10,000 or so, so you continue to have some leeway round that degree, you continue to have some leeway to go to a cheaper price and nonetheless technically be diminishing losses…
Finally, I feel 2023 goes to be only a uneven yr to say the least, a restoration yr, the place we attempt to simply slowly get well and discover a backside someplace, whether or not it’s $15,000 or a decrease low, after which we slowly construct out from it.”
historic information from late 2018, Cowen notes that Bitcoin’s backside tends to correlate with the Federal Reserve’s terminal fee, or the ultimate long-term rate of interest the company units as its goal.
“We all know that final cycle Bitcoin bottomed as soon as the Fed hit the terminal fee… Bitcoin bottomed at [$3,000] after we hit the terminal fee, after which when the Fed started to ease, Bitcoin got here again down, nevertheless it put in the next low.”
Bitcoin is buying and selling for $22,382 at time of writing, a 9.37% enhance over the past 24 hours.
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