A top crypto analyst says Bitcoin (BTC) will see another big dip before it has a chance to enter a new bull cycle.
In a new video update, analyst Benjamin Cowen says tells Its 787,000 YouTube subscribers indicate that the leading cryptocurrency needs to take another step back in terms of market capitalization before the next bull market begins.
Looking at logarithmic progressions, Cowen says that depending on the timing, the dip can form a double bottom pattern, a lower low or a higher low.
“I suspect that before we have enough energy to get a real bull market going and not one of those fake pathetic ones that everyone is going crazy about during the pre-halving year, we will visit [the lowest] regression band.
I think there’s a good chance, and depending on when that happens would determine if it’s a lower low, a double bottom, or a higher low. If you want to speak of a double bottom, that would mean that it will take place in February 2024 at the latest.
So if this happens in February 2024, or as late as February 2024, this could correspond to a double bottom. If it occurs earlier, it could correspond to a lower low. If it occurs after that, it could correspond to a higher low. It all depends on when it happens.”
Logarithmic bands track attempts to predict the price of an asset over time by basing themselves on previous highs or lows. with different colored bands representing each price range. According to Cowen, during any bear market, the price of BTC tends to move one band lower than the previous cycle.
“Logarithmic progression assumes that more exponential gains occur earlier in that asset’s history. The sooner it is active, the more likely it is to experience these exponential gains. The further you get out, it becomes more and more difficult to move the price because the market cap is so much larger.
So you have a low, which is more or less set to one regression band, and then you have a higher low, but [on] a lower regression band. Keep that in mind because you will see this pattern emerge every time.”
Bitcoin is trading at $25,868 at the time of writing, up fractionally over the past 24 hours.
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