This is when the Bitcoin bottom will be in
- Market analyst Benjamin Cowen speculates that a Bitcoin price bottom could be reached in December.
- Market watchers have had mixed expectations for when the BTC bear market will end.
Market analysts continue to speculate that the price of Bitcoin may not have bottomed out at the current price. Crypto analyst Benjamin Cowen is among such commentators who expect the market to mimic other bear market cycles, particularly the capitulation scenario of 2018.
In a new analysis, Cowen believed that it would not be unreasonable to expect a bottoming scenario similar to that of 2018, where BTC made a series of slightly higher bottoms before capitulating sharply to new lows to reach the price bottom.
Cowen extrapolated historical data from the 200-day moving average technical indicator to support his argument. According to him, the current market could see a potential capitulation event to mark the bottom around the Christmas holiday this year. At this point, BTC may be poised for a bull run. He added;
We could sort of extrapolate out the 200-day simple moving average if it were to continue down on its current path, where might it cross? … You could see that it would cross somewhere in late December, right around Christmas, December 25th, December 26th, December 27th, around the holidays is where it would cross,
While admitting that the analysis is just speculation, he further noted that bear cycles in the Bitcoin market have historically lasted an average of one year. The current bear market has been going on for over a year and could therefore end soon, he said, adding the disclaimer that investors should not spend too much energy trying to find the bottom.
So far in 2022, arguing for a bottom hasn’t really served anyone well, which is why at the beginning of the year we said, ‘Look, don’t spend too much mental energy trying to call a bottom in 2022’
Can the price of BTC continue to crash?
Earlier, Cowen told his over 770,000 subscribers to watch out for the crossing of the Bitcoin percent of supply in profit and the Bitcoin 30-day moving average, as this could mark a market bottom as it has in other bear markets.
While this crossing has yet to materialize, analysts and market participants expect the price of Bitcoin to fall further than even the two-year low of around $15,600 it hit last week.
According to a report by the Wall Street Journal (WSJ), Jake Wujastyk, VP of TrendSpider LLC, has speculated that the Bitcoin market had formed a clear “bear flag” and would inevitably fall to new lows or potentially fall to zero.
In contrast, Galaxy Digital’s Mike Novogratz recently claimed that crypto is not going anywhere and will rise to new heights. BTC is trading at around $16,200, down 2.07 percent in the last 24 hours at the time of writing.
