Popular cryptocurrency analyst Benjamin Cowen is examining whether Bitcoin (BTC) has bottomed out after falling by over 75% from its all-time high.
Cowen tells his 774,000 YouTube subscribers that, based on the flagship crypto asset’s trading history, Bitcoin could be on the cusp of a major bottom.
“There are a lot of cyclical indicators for Bitcoin that are probably coming up pretty soon, right?
We had major bottoms in the cryptocurrency asset class beginning of 2015, basically the end of 2014 but it bled into 2015. We had a major bottom at the end of 2018.
We’re potentially looking at another major bottom in crypto at the end of 2022 or early 2023. This would correspond to what historically would be a major bottom. And I would contend that it could be the market cycle bottom.”
According to the crypto strategist, digital assets bottom out after about a year of a bear market.
“Not only do you need price-based capitulation, but you also need time-based capitulation right? A time-based capitulation is needed as well and oftentimes in crypto that looks like at least a year of a bear market.
In 2013 it took more than a year, it took like 14 months before the bottom was actually in.”
Cowen says that one of the definite signs that the bottom could be in will be the total market cap of the top 125 crypto assets falling by over 20% from the current levels.
“I think whether it’s the bottom or not will depend on how low it goes.
If it goes a lot lower, if it’s more than a 20% correction from here, then I think we could start to make the case the bottom is in.
If it’s not, then I still think we need to be sort of on our toes and assuming that it could still continue to take a while to play out.”