A bull market for Bitcoin and other digital assets is on the horizon, but it will come after a pronounced drop and the attainment of a real bottom, said cryptocurrency analyst Benjamin Cowen.
#Bitcoin: Comparing Capitulationshttps://t.co/CpIuiQsRWJ
— Benjamin Cowen (@intocryptoverse) November 26, 2022
The expert expects a repeat of the 2018 crypto-winter scenario. Then digital gold posted several stages of gradual recovery, but a durable upturn only followed a plunge to the bear cycle’s bottom.
Cowen reminded that since the start of the year he has urged users ‘not to waste mental energy’ on trying to guess the bottom.
“During a bear market, we consistently see: a drop, consolidation, a small rally, and another fall. We watch for the simple signal—the crossing of the 200-day moving average and Bitcoin’s price chart,” the analyst noted.
In his assessment, this will occur between 25 and 27 December. It is then that the price is expected to hit a real bottom and begin a sustained rise, Cowen believes.
As further evidence, he noted that bear markets historically lasted about a year. The 2014 cycle lasted 14 months, 2018 12 months.
In another video regarding the forecast for further decline in Bitcoin, Cowen referred to the Puell Multiple indicator for determining a bottom. In previous cycles, the metric’s value at the bottom was about 0.3. This year the indicator has fallen only to 0.375 so far.
#Bitcoin On-Chain Analysis: Puell Multiple (Identifying Macro Bottoms)https://t.co/vKD5aIFtq1
— Benjamin Cowen (@intocryptoverse) November 26, 2022
In early May, Cowen highlighted Ethereum, Cardano, Avalanche and Polkadot as promising altcoins in the current phase of the market. He also said that he did not invest in the Terra project that collapsed.
Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.