Reserve Dollar

Bitcoin

when

Reserve

The post <a href="https://coinpedia.org/news/bitcoin-not-in-mania-phase-benjamin-cowen-says-price-may-drop-to-38k-levels-cooling-and-recovery-periods-revealed/">Bitcoin Not in ‘Mania Phase’: Benjamin Cowen Says Price May Drop to $38k Levels; Cooling and Recovery Periods Revealed</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
Popular analyst and Founder of Into The Cryptoverse, Benjamin Cowen,<a href="https://www.youtube.com/watch?v=WbzC0i619XA" target="_blank" rel="noreferrer noopener nofollow"> joined David Lin</a> for a discussion about Bitcoin and its currency cycle. Cowen believes Bitcoin dominance might peak when the Fed cuts rates and shifts from quantitative tightening to easing. 
Historically, Bitcoin’s current behavior mirrors what happened in 2019, where it diverged from the NASDAQ after the Federal Reserve cut rates. This divergence, he said is similar to Bitcoin’s previous behavior in 2019, where it weakened before the equity markets. 
Cowen also said that Bitcoin’s peak in late 2021 led to a major drop in 2022. The initial drop in Bitcoin was due to the market overheating, fueled by rapid speculation. He believes the current situation resembles the 2019 cycle more than the 2021 cycle. In 2021, Bitcoin’s social interest was much higher, but now it’s lower, similar to the situation in 2019. This suggests that the market is not in a mania phase like it was in 2021. Currently, Bitcoin’s rise is partly due to increased Bitcoin dominance as people convert their altcoins into Bitcoin. 
The analyst doesn’t believe Bitcoin dominance will return to 100% of the crypto market. Instead, he thinks it might peak around 60% to 70% due to the presence of other cryptocurrencies like Ethereum. 
<h2 class="wp-block-heading" id="h-what-happened-in-the-previous-cycle">What Happened In The Previous Cycle?</h2> 
Cowen explained that in the last cycle, Bitcoin dominance reached its mid-cycle top when it crossed the 0.5 Fibonacci retracement level. A similar pattern happened this cycle, hinting that Bitcoin might be at a mid-cycle top now. Historically, after hitting this level, Bitcoin often experiences a downtrend, which lasted about six months in 2019. 
He also pointed out that the market could face either a “soft landing” like in 2019 or a “hard landing” similar to 2020. He expects Bitcoin to cool off for several months, potentially through the end of the year, and then possibly recover in 2025. 
Regarding <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/" target="_blank" rel="noreferrer noopener">Bitcoin’s price</a> floor, he’s cautious about predicting it. While some suggest $50,000 is a new floor, he argues that predicting exact floors or tops is unreliable. He also added that Bitcoin might drop to around $38,000 or lower, similar to past cycles. 
Also Check Out: <a href="https://coinpedia.org/news/crypto-market-on-high-alert-how-japans-yen-could-rattle-bitcoin-price/" target="_blank" rel="noreferrer noopener">Crypto Market on High Alert: How Japan’s Yen Could Rattle Bitcoin Price</a>

Bitcoin Not in ‘Mania Phase’: Benjamin Cowen Says Price May Drop to $38k Levels; Cooling and Recovery Periods Revealed

Table of Contents

CoinPedia News

Other articles published on Aug 20, 2024

How Sahil Arora Netted $3M with Celeb Token Pump-and-Dump Schemes

Pump.fun Makes Token Creation Free, Shifts Initial Fee to First Buyers

Bitcoin rallies to $61K with strong ETF inflows

PEXX Announces Strategic Acquisition of Chain Debrief

Adaverse Invests $500,000 in Saudi Loyalty Platform Mithu

State Street Partners With Taurus to Offer Tokenization Services

Join our free newsletter for daily crypto updates!