Bitcoin bear market conditions currently look alot like those of 2018 – but with one big difference : theyre a heck of a lot less volatile right now. Benjamin Cowen thinks that this is a pretty strong indicator that bitcoin might reach its bottom sometime around late september or early october. The advice from experts is to start considering making some purchases now rather than just waiting till you think you know exactly where the bottom is going to be.
Comparing the Current Bitcoin Bear Market to 2018
Benjamin Cowen points out that the current Bitcoin bear market bears a lot of similarity to the 2018 downturn , but with a key difference in being lower volatility. In 2018, the price of Bitcoin hit a low point back in February, then recovered enough to form a higher low between March and April, before subsequently peaking again in May. This rather distinctive pattern seems to be repeating itself right now in the current market conditions. The lower volatility that Cowen has noted suggests that while the market is very bearish, price swings are nowhere near as extreme as they were back in 2018 – and that could be a sign that we’re now in a more stable decline phase.
Potential Timeline for Market Bottom
In 2018, Bitcoin’s low point came in December after a pretty wild ride for the year , hit by another downturn in July that had briefly seemed like the start of a rally – but that was short-lived & completely wiped out by August & September losses. According to Cowen, the current bear market might well be wrapping up a lot sooner than it did in 2018 possibly by end of September or early October. They’re basing this hunch on there not being a supportive business cycle for risky assets this year , which is a pretty different story to the previous bear market’s dynamics. Its also worth noting that the current peak in October came earlier than it did in 2018 & that adds to the idea that this bear market is going to bottom out a lot faster than the last one.
Investment Strategy Amidst the Bear Market
Benjamin Cowen advises investors against waiting for the exact market bottom before sinking their teeth into Bitcoin. Taking into account the patterns of yesteryear and the current state of the market, he thinks its a better idea to start making investments now rather than trying to time the lowest point – which is notoriously tricky to do. By adopting this more forward-thinking investment strategy investors are pretty much accepting that market bottoms are unpredictable and it pays to be doing some dollar cost averaging when the markets are quiet & less volatile.
Source — Benjamin Cowen: https://www.youtube.com/watch?v=Wf7vUIoGQrE