Will the Current Bear Market See Bitcoin Set a New All Time Low?
2022.04.29 21:16
Will the Current Bear Market See Bitcoin Set a New All Time Low?
- Benjamin Cowen believes that the historic efficiency of Bitcoin (BTC) means that investing in altcoins now stays dangerous.
- He also believes that the price of Bitcoin will simulate the trend seen towards the middle of 2018 after the meteoric bull run of 2017.
- Although the bearish trend may continue, it is highly unlikely for Bitcoin to hit a new low.
Crypto analyst Benjamin Cowen is of the opinion that the historic efficiency of Bitcoin (BTC) means that investing in altcoins now stays dangerous.
Cowen told his 729,000 YouTube subscribers that the worth motion of Bitcoin in 2018 hints at what would occur to the altcoins market if the benchmark cryptocurrency continues to slip.
Cowen stated that “we need to look at what has happened in the past and say if we put a lower low, what happens? The altcoin market against the Bitcoin market changes. The best way to understand that is by looking at Bitcoin dominance (the ration between the market cap of Bitcoin to the rest of the cryptocurrency markets).”
Cowen continues by saying “The dominance right now is at the exact same level as it was in June 2018, the exact same level and then the dominance shot up, what happened in June of 2018? That’s where Bitcoin puts in a lower low.”
In short, Cowen believes that the price of Bitcoin will simulate the trend seen towards the middle of 2018 after the meteoric bull run of 2017, which saw the price increase tenfold from around $2,000 to approximately $20,000.
It is important to consider if this will be the case in 2017, when there was not a single country that accepted Bitcoin as legal tender, whereas we currently see a number of countries have started accepting the crypto as a valid and legal means of payment.
Although the bearish trend may continue, it is highly unlikely for Bitcoin to hit a new low seeing that the price of Bitcoin has been hovering around the key level of $40,000 for some time now. However, this doesn’t mean that BTC is completely off the hook.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.
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