Top Crypto Analyst Updates Bitcoin Outlook, Says This Is When Correction May End

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A popular crypto analyst examines past downtrends in Bitcoin (BTC) to chart a potential recovery timeline for the struggling cryptocurrency.

In a new strategy session, Benjamin Cowen tells his 695,000 YouTube subscribers that high-volume liquidation events have historically signaled that a support level has been found and Bitcoin can surge higher.

Cowen points to the sell-off events that took place in December 2018, March 2020, and May 2021. He says that despite Bitcoin’s recent price decline, he doesn’t think this signifies the kind of major capitulation needed to provide support ahead. the next big upside down move.

“My philosophy at this point, and it has been for the entire first quarter, is that I think the first quarter will be bearish, you have to assume the downtrend will continue until proven otherwise. “

Source: Benjamin Cowen/YouTube

Cowen believes the same retail investors who drove Bitcoin’s rally in 2020 were also responsible for its rise in late summer and fall 2021, rather than a wave of new investors entering the space. . He cites both on-chain and social metrics as indicators.

“I’ve been saying for a while now that the demand for bitcoin from, for example, new market players, has been gone for almost a year.

It’s not like we can say it just came out in November… You don’t really see a lot of new market players buying Bitcoin at this point in the market cycle.

As for what it might take for Bitcoin to wake up and move higher, Cowen highlights previous patterns of red candles he calls “brick walls” in late 2019 and early 2019. 2020 which supported a market trend change followed by a BTC rally.

“Now we’re just looking for another wall to hit, where the volume increases so much that we liquidate anyone who asks to be liquidated, and then we can start to see a healthier market.”

Cowen says no one knows for sure when such an event might take place, but he remains confident that Bitcoin will return to positive sentiment in 2022.

“I don’t think all of 2022 will be bearish.

I think Q1 is going to be a red light district and maybe Q2 will be a red light district.

But I think as we get to later in the year we’ll see things pick up.

At the time of writing, Bitcoin is down over 10% on the day and trading at $36,442.

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