Bitcoin Is Heading Toward Massive Capitulation, Claims Crypto Analyst Benjamin Cowen
Famous crypto analyst Benjamin Cowen recently spoke on his Youtube channel about Bitcoin’s stance in the bear market.
Benjamin believes that BTC could be headed for a capitulation event. He presented this analysis based on Bitcoin’s one-year running return on investment (ROI) indicator.
Cowen informed his audience that Bitcoin’s one-year ROI bottoms at about 0.2 traditionally. Thus, if BTC sees a correction to $13,000-$14,000 in a month or two, it would plunge down to a downside potential of 30%. It would definitely touch the 0.2 ROI mark in this situation.
The chart below supports this claim.
Cowen believes that Bitcoin (BTC) might be on its way to another sell-off event, that would eventually bring about a fresh bear market low. According to Cowen, the BTC holders’ capitulation might put panic sellers in a tough spot.
The analyst added that the downtrend can continue for months and eventually settle at a final capitulation, which would bring the final bear market bottom for BTC, after which we might see a strong rally emerging.
At the time of writing, Bitcoin is trading around $19,216, up by 0.71%.Source