Cryptocurrency analyst Benjamin Cowen shared his thoughts on the cryptocurrency market’s recent downturn and discussed the path that Bitcoin could follow.
Bitcoin fell sharply to the $ 30,415 level on Wednesday, according to CoinGecko. Benjamin Cowen, who went to YouTube to discuss what this crazy price surge means for Bitcoin (BTC), says that the bullish predictions of Bitcoin’s price target for this year are waning:
“I’m more inclined to think we’re more likely to spend a little more time going down before going up.
If you think it will bounce and rise in the next few months and Bitcoin will be $ 200,000, at this point where the price is now, you should see a sudden recovery. Otherwise, I don’t think we could do this.
But if we get that sudden recovery and start moving up again, then maybe this is a possibility. Still, I am a little more pessimistic about his quick recovery. “
Cowen says there are two fundamental theories regarding the length of Bitcoin’s current bullish cycle. The first scenario shows that Bitcoin will peak before the end of the year, and the second predicts a long bull cycle in which it will take a little longer for Bitcoin to reach its peak. Cowen agrees with the second theory:
“I think there are two main lines of thought here. The first is a four-year cycle. And in this scenario, if you expect the four-year cycle to happen, then you would probably expect a pretty big leap so we can get back on our way. In order to get these fairly high numbers into the third quarter or fourth quarter, we need to make a jump in a relatively short time so we can get back on our way. If you think it will peak this year, it could be.
The other will of course be prolonged cycles. And this will parallel the idea that it will take a little longer and a re-accumulation phase is not the worst thing in the world for Bitcoin. “
Crypto monetary phenomenon, the time to reach peak Bitcoin traders say it may take and especially to those new to the field of cryptocurrency, adding that BTC provides the opportunity to accumulate at relatively attractive prices:
“What I will say for this cycle is that Bitcoin has been very generous. And what potentially people allow to do is repackage before they see six digits …
This allows [new] entrants to buy at a discount… In the big picture, if you expect a six-digit Bitcoin like me after this cycle, anything under $ 40,000 is not the worst price in the world. This also depends on your tolerance for risk. It can easily continue to fall off. That’s why I think a DCA (dollar-cost average) strategy is the most appropriate strategy for Bitcoin.”
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