A popular cryptocurrency analyst has warned that Bitcoin (BTC) could drop further before starting a new bull run.
Widely followed analyst Benjamin Cowen shared a new video with his 784,000 YouTube subscribers and explained his current views on the market. According to Cowen, the leading crypto asset Bitcoin still has the potential to drop into the $10,000-12,000 range before it starts its next bull run.
Using a set of technical indicators and on-chain data in his analysis, Cowen is of the opinion that Bitcoin could create a new one, similar to what it did in June last year. At that time, Bitcoin formed a new base after falling below $18,000, and a similar move could come, according to the analyst:
“There is enough evidence to suggest that Bitcoin (BTC) could drop, so I’ll keep an open mind to this possible outcome, just like in the summer when many people say June is the bottom. Back then, a lot of people called June the bottom and it wasn’t, right?”
Koinfinans.com As we reported, according to Cowen, Bitcoin can pull the bottom level up to $ 10,000. Cowen adds that BTC has witnessed a bear market the last three times, down at least 84% from its previous peak.
“We could drop to $10,000 or $12,000 and still face diminishing losses (a concept that suggests that BTC’s peak-to-bottom decline decreases with each cycle). For us to go down 84% from the top, we need to break below $10,000, so you still have some leeway around this level, you still have some leeway to go lower…
Ultimately, I think 2023 is going to be a volatile year to say the least, whether it’s $15,000 or a lower low, where we’ll try to slowly recover and find a bottom somewhere, and then we’ll slowly rise.”
Finally, Bitcoin is trading at $23,543 at the time of writing, up 14.65% in the last 24 hours.
You can check the price movements here.