Bitcoin
This is where Bitcoin could bottom based on historical precedents, according to analyst Benjamin Cowen
Widely followed crypto analyst Benjamin Cowen is offering his view on when Bitcoin (Bitcoin) could potentially bottom out as the leading digital asset hovers around $63,000.
In a new video update, Cowen it says to his YouTube channel’s 801,000 subscribers that Bitcoin’s current price action resembles that which followed the crypto king’s second halving event eight years ago, more so than the 2020 halving.
“It seems to me that it is mimicking 2016 much more than the other two cycles, which makes sense. I mean, a lot of people who have been following Bitcoin for a while have been comparing this cycle more to the 2016 cycle than the 2020 cycle.”
Source: Benjamin Cowen/X
According to Cowen, the leading crypto asset could potentially bottom out in the cycle in the coming weeks based on the Bitcoin Return on Investment (ROI) After Halving metric. The Bitcoin ROI After Halving metric is the relationship between the current price and the price of BTC at the time of the halving. The latest halving, which halves miner rewards every four years, took place on April 19.
“If you look at 2016, which may be relevant for comparison, you can see that Bitcoin did not durably return above an ROI of one until about three and a half months after the halving.
And I don’t know if it’s going to happen that way or not, but you can see that this would be further evidence of a summer low. This could potentially be further evidence of a summer low if you look at Bitcoin’s ROI as a measure of the halving and compare it to the 2016 cycle.”
Source: Benjamin Cowen/X
Bitcoin is trading for $62,798 at the time of writing, a fractional increase over the past 24 hours.
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