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Here’s What Could Signal a Bitcoin (BTC) Turnaround Next Year, According to Analyst Benjamin Cowen

Fashionable crypto analyst Benjamin Cowen says that Bitcoin (BTC) holders must be looking out for one sign that would mark the tip of the king crypto’s prolonged bear market. 

In a brand new video, Cowen tells his 779,000 YouTube subscribers that Bitcoin’s present share drawdown from its all-time excessive is approaching a degree that signalled the underside of the 2018 and 2014 bear markets. 

“Bitcoin is type of on this vary of being 75% down from the all-time excessive, so it’s type of like in between. It’s not on the ranges that it was at on this previous summer time, but it surely’s additionally not as far down because it traditionally goes both…

If the months move us by and also you see the proportion drawdown from all-time excessive for Bitcoin actually begin to match what you’ve seen in prior bear markets, it might be no less than an indication that issues may lastly begin to be turning.” 

Supply: Benjamin Cowen/YouTube

Bitcoin dropped over 80% from its all-time excessive through the 2014 and 2018 bear markets earlier than bottoming out, in keeping with the analyst’s chart. At time of writing, BTC is down 75.6% from its file excessive, which it hit in November final yr.

The analyst can also be maintaining a detailed watch on the entire market cap (TMC) share drawdown from the all-time excessive. In accordance with Cowen, the market capitalization of all crypto property is at present down 72% from its all-time excessive, which continues to be a number of share factors away from the TMC drawdowns witnessed through the earlier two bear markets. 

The analyst says the distinction in TMC drawdowns signifies that altcoins could have extra draw back potential if historical past repeats. 

“Final cycle, the entire market cap went down about 87%. The cycle earlier than that, it solely went down about 78%, however that was additionally when it was largely simply Bitcoin. 

This discrepancy from 72% to 88% [TMC percentage drawdown from all-time high] in comparison with 75% to 85% [BTC drawdown from all-time high] or so is among the contributing components into contemplating why the dominance of Bitcoin continues to be poised to make a sustained transfer to the upside. It’s the truth that the altcoin market nonetheless has appreciable floor that it may simply quit.”

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Disclaimer: Opinions expressed at The Each day Hodl will not be funding recommendation. Buyers ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital property. Please be suggested that your transfers and trades are at your personal danger, and any loses it’s possible you’ll incur are your accountability. The Each day Hodl doesn’t suggest the shopping for or promoting of any cryptocurrencies or digital property, neither is The Each day Hodl an funding advisor. Please notice that The Each day Hodl participates in online marketing.

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