Here’s When Bitcoin Could Hit Its Lowest Point Based on Historical Patterns, According to Analyst Benjamin Cowen
Widely followed cryptocurrency analyst Benjamin Cowen has shared his insights on when Bitcoin (BTC) could potentially reach its bottom as the leading digital asset hovers around $63,000.
In a recent video update, Cowen, who has a substantial following of 801,000 subscribers on YouTube, suggests that the current price action of Bitcoin resembles the pattern that followed the cryptocurrency’s second halving event eight years ago more closely than the halving in 2020.
“It looks to me like it’s following the 2016 cycle more so than the other two cycles, which makes sense. Many long-time Bitcoin followers have been comparing this cycle more to 2016 than the one in 2020,” explained Cowen.
According to Cowen, based on the Bitcoin Return on Investment (ROI) After Halving metric, the flagship cryptocurrency could potentially reach its lowest point in the coming weeks. This metric measures the ratio of the current price relative to the price of BTC at the time of halving. The most recent halving occurred on April 19th, where the rewards for miners are cut in half every four years.
“If we look at 2016, which could be relevant to compare to, we can see that Bitcoin didn’t consistently rise above an ROI of one until about three and a half months after the halving,” Cowen noted.
Although Cowen acknowledges that it may not play out exactly as it did in 2016, he believes that this evidence could potentially support the idea of a low point in the summer when considering Bitcoin’s ROI from the halving and comparing it to the 2016 cycle.
As of now, Bitcoin is trading at $62,798, showing a slight increase in value over the past 24 hours.
Disclaimer: This generated text is for informational purposes only and should not be considered financial advice.