A top crypto analyst says that Bitcoin (BTC) will see one more major dip before it has the chance of entering a new bull cycle.
In a new video update, analyst Benjamin Cowen tells his 787,000 YouTube subscribers that the top crypto asset by market cap is due for another leg down before the next bull market begins.
Looking at logarithmic progressions, Cowen says that depending on the timing, the dip could either form a double bottom pattern, a lower low, or a higher low.
“I suspect that before we have enough juice to get a real bull market going and not one of these fake pathetic ones that everyone loses their mind over during the pre-halving year, I think that we will visit [the lowest] regression band.
I think there’s a good chance, and depending on when that occurs would dictate whether it’s a lower low, a double bottom, or a higher low. If you want to say a double bottom then that would mean occurring no later than February of 2024.
So if it occurs by February 2024 or if it doesn’t occur until February 2024, then it could correspond to a double bottom. If it occurs before, then it could correspond to a lower low. If it occurs after that then it could correspond to a higher low. It all depends on when it happens.”
Logarithmic bands track attempt to forecast the price of an asset over time by rooting themselves in previous highs or lows. with different colored bands representing each price range. According to Cowen, during every bear market, BTC’s price tends to bottom out one band lower than the previous cycle.
“Logarithmic progression assumes that more exponential gains occur earlier in that asset’s history. The earlier the asset is, the more likely it can experience those exponential gains. The further you get out, it’s harder and harder to move the price because the market cap is so much greater.
So you have a low, which is sort of set at one regression band, and then you have a higher low, but [on] a lower regression band. Now keep that in mind because you’re going to see this pattern emerge every single time.”
Source: Benjamin Cowen/ YouTube
Bitcoin is trading for $25,868 at time of writing, a fractional increase during the last 24 hours.