A widely followed crypto analyst says Bitcoin’s (BTC) current correction is reminiscent of the price action of about five years ago.
In a new interview Joining financial and tech YouTuber David Lin, crypto strategist Benjamin Cowen says the social risk measure indicates the crypto king is following in the footsteps of its price action from 2019.
According to Cowen, the number of people watching crypto YouTube channels has dropped significantly, indicating that the rate could change and recover like it did in 2021.
“I think it’s looking more like 2019 and there are a number of reasons for that – one reason [is] if you look at one of the metrics that I track, the social interest in the crypto space, [which is] basically consists of people watching crypto YouTube channels…
You’ll see that in 2021 when we had this mania phase, you can see a lot of people coming in to watch crypto YouTube, [some] channels averaged about four million views per day at the time – now those same channels average only about 850,000 views per day…
If you go back and look at the social risk, you can see that the social risk bottomed out and then recovered. It looks a lot like me, just like 2019.”
However, Cowen further notes that the crypto markets may not see the same mania in 2021 as retail investors have yet to return to the sector.
“I don’t really think what we just experienced was a phase of the 2021 style mania because retail never really came back, which has been one of the interesting things, it’s been one of the really confusing things in the market, I think me for many people. people because Bitcoin went to all-time highs, but we never really saw that as the return of retail.
And again, another piece of evidence suggesting that 2019 isn’t the worst comparison, it’s actually a very similar move in terms of [percentage]…
If you were to take a price range from the 2018 low to the 2019 high, that’s a rally of about 350%. The same thing we just saw from the 2022 rally to early 2024.”
Bitcoin is trading at $58,732 at the time of writing, down 1.84% over the past 24 hours.
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