Analyst’s Outlook
Benjamin Cowen, a renowned crypto analyst, believes that Bitcoin (BTC) could be nearing its bottom. He draws comparisons to the market’s behavior after the 2016 halving event, which occurred eight years ago.
Historical Precedent
According to Cowen, the current price action resembles that of 2016 more closely than the 2020 halving. This suggests that Bitcoin could potentially hit its cycle bottom in the coming weeks.
Bitcoin Return on Investment (ROI) Metric
Cowen uses the Bitcoin ROI After Halving metric to assess the potential bottom. This metric compares the current price to the price at the time of the halving, which occurred on April 19th.
2016 Comparison
In 2016, Bitcoin took about three and a half months to recover above an ROI of one after the halving. Cowen believes that if this pattern holds true, it could indicate a summer low for Bitcoin.
Current Market Conditions
As of writing, Bitcoin is trading at $62,798, showing a slight increase over the past 24 hours.
