A popular analyst says that investors will have opportunities in the cryptocurrency markets this year to make huge gains in the future.
In a new strategy session on Youtube, cryptocurrency strategist Benjamin Cowen explains to his 780,000 subscribers that cryptocurrency markets are likely to drop in value before a recovery can take shape.
It uses a logarithmic regression graph of cryptocurrency market capitalization to show historical upper and lower bounds. According to him, the cryptocurrency market as a whole is likely to capitulate quickly or trend sideways in the coming months.
“I think we will eventually reach that lower green trend line. Will we cross it? Honestly, it’s the one I would prefer, because I think it offers more opportunities. Of course, there’s always a chance we’ll go sideways until we hit it. We already have.
If you look at 2015, that’s a good example of coming out of a one-year bear market and instead of going down the trend line, we just went sideways until we hit it. It’s pretty much the same in 2018. We stayed here. We actually pushed our head back above the fair value line, but more or less just ranged sideways until we hit it, and then the bull market started.
I don’t think a sustainable bull market will happen until we reach that lower green trend line. Either we catch up with it quickly, or we stay to one side long enough for it to catch up with us slowly. »
Looking at Cowen’s chart, he expects the cryptocurrency market to bottom around the second half of this year.
Cowen also says the market conditions in 2022 that made cash the strongest position will likely change this year, as he expects cryptocurrencies to present opportunities for generational accumulation.
“The good thing is that I really think 2023 will bring a lot of opportunities to enter the market. As you know, in 2022 I have often said that cash is king, stack cash….
I really think we’re going to have some pretty generational opportunities ahead of us, so stay tuned. »