Here’s why Bitcoin has likely hit bottom already, says crypto analyst Benjamin Cowen

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Crypto analyst Benjamin Cowen says there’s a good chance Bitcoin (BTC) has already found a bottom, despite posting what many traders would say is pretty bearish price action.

In a new strategy session, Cowen tells his 678,000 YouTube subscribers that the pricing of Bitcoin in assets other than the US dollar can sometimes be revealing.

Instead of looking at Bitcoin in terms of US dollars, the analyst looks at the price of BTC on the stock exchange using the S&P 500. According to Cowen, Bitcoin has already reached critical support when paired with the S&P 500.

“But if you look at Bitcoin divided by the stock market, we’re actually testing those levels. In fact, we’re already testing the levels that we tested in September. So some people are sitting here and waiting to say, ‘Okay, we have to get back down to that level, “and you might be right. It is certainly possible to go back to $ 40,000. It is certainly possible to go back to $ 42,000.

Everything is possible with investment in general. All models are wrong. Some are useful, I have no idea what will happen tomorrow. Bitcoin could go to $ 40,000 tomorrow and it could go to $ 55,000 tomorrow. What’s interesting about this analysis is that we are actually testing the levels that we have [in September]. “

Source: Benjamin Cowen

Cowen points out that when the stock market is divided by the M2 money supply, it appears to be trading sideways rather than in an upward straight line. Using the same principle, the crypto analyst says Bitcoin would be considered undervalued and due for another uptrend.

“With all this feeling of money and inflation, and the idea that maybe stocks aren’t necessarily worth more because they’re more fundamental but maybe the US dollar is worth less, could it be a measure of some type of inflation and how we can then maybe link it to Bitcoin and say… based on that, Bitcoin is testing where we were in September.

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