Standard crypto analyst Benjamin Cowen says that Bitcoin (BTC) holders needs to be looking out for one sign that would mark the top of the king crypto’s prolonged bear market.
In a brand new video, Cowen tells his 779,000 YouTube subscribers that Bitcoin’s present share drawdown from its all-time excessive is approaching a stage that signalled the underside of the 2018 and 2014 bear markets.
“Bitcoin is type of on this vary of being 75% down from the all-time excessive, so it’s type of like in between. It’s not on the ranges that it was at on this previous summer season, but it surely’s additionally not as far down because it traditionally goes both…
If the months cross us by and also you see the proportion drawdown from all-time excessive for Bitcoin actually begin to match what you’ve seen in prior bear markets, it might be no less than an indication that issues might lastly begin to be turning.”
Bitcoin dropped over 80% from its all-time excessive throughout the 2014 and 2018 bear markets earlier than bottoming out, in accordance with the analyst’s chart. At time of writing, BTC is down 75.6% from its report excessive, which it hit in November final 12 months.
The analyst can also be holding a detailed watch on the full market cap (TMC) share drawdown from the all-time excessive. In accordance with Cowen, the market capitalization of all crypto belongings is presently down 72% from its all-time excessive, which remains to be a number of share factors away from the TMC drawdowns witnessed throughout the earlier two bear markets.
The analyst says the distinction in TMC drawdowns signifies that altcoins might have extra draw back potential if historical past repeats.
“Final cycle, the full market cap went down about 87%. The cycle earlier than that, it solely went down about 78%, however that was additionally when it was largely simply Bitcoin.
This discrepancy from 72% to 88% [TMC percentage drawdown from all-time high] in comparison with 75% to 85% [BTC drawdown from all-time high] or so is among the contributing components into contemplating why the dominance of Bitcoin remains to be poised to make a sustained transfer to the upside. It’s the truth that the altcoin market nonetheless has appreciable floor that it might simply quit.”
I
Do not Miss a Beat – Subscribe to get crypto e mail alerts delivered on to your inbox
Test Worth Motion
Comply with us on Twitter, Facebook and Telegram
Surf The Every day Hodl Combine
 
Disclaimer: Opinions expressed at The Every day Hodl are usually not funding recommendation. Traders ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital belongings. Please be suggested that your transfers and trades are at your individual danger, and any loses you could incur are your accountability. The Every day Hodl doesn’t advocate the shopping for or promoting of any cryptocurrencies or digital belongings, neither is The Every day Hodl an funding advisor. Please observe that The Every day Hodl participates in affiliate marketing online.
Featured Picture: Shutterstock/yogadzwara/Chuenmanuse
