Crypto analyst Benjamin Cowen predicts Bitcoin (BTC) capitulation scenario – here’s his target
Popular crypto analyst Benjamin Cowen believes Bitcoin (BTC) could still witness another sell-off event on its way to hitting a fresh bear market.
In a new YouTube video, Cowen tells his 770,000 subscribers that Bitcoin’s one-year rolling return on investment (ROI) indicator suggests that BTC may be headed for a capitulation event.
“Historically, [Bitcoin’s one-year ROI] bottoms around 0.2. The best way for it to bottom out at 0.2 would be to go down to the $13,000-$14,000 range sometime in the next month or two. And then it will probably hit around that 0.2 level, because we’re comparing that to $69,000, and 20% of around $69,000 or at least where the daily close was gets you to around the $13,000-$14,000 level .”
Looking at the analyst’s chart, Bitcoin tends to print a bear market bottom whenever the running one-year return reaches 0.2.
Should Bitcoin holders capitulate, Cowen predicts that BTC will whip panic sellers by executing a sudden and strong rally once the bottom is in.
“If we see some kind of capitulation, we’ll see some kind of strong rally after that, because all things considered, this would be the typical bottom for Bitcoin. You go sideways about 70% down for months and months and months.. . and then eventually you see final capitulation. This will be the typical bear market bottom for Bitcoin.”
Bitcoin is trading at $19,585 at the time of writing. A correction to Cowen’s $14,000 target suggests an almost 30% downside potential for BTC.
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