Bitcoin To Enter Bear Market In Coming Months – Predicts Crypto Analyst Benjamin Cowen

In a new video, Cowen predicts that Bitcoin will plummet over the next few months ahead of the halving event scheduled for next year. Similar to the past, Bitcoin has displayed a similar pattern in the months before previous halvings. Cowen believes that Bitcoin will have one more scare later this year, or at the latest, early next year, right before the halving event.

Cowen is putting his theory to the test by noting that Bitcoin had similar trends in 2015, 2019, and 2020. He also warned that in case of a correction in the market, altcoins would be more severely affected than Bitcoin due to their lower liquidity. During a correction, lower liquidity assets will take a harder hit than those with more liquidity.

The analyst warns that during a pre-halving year, liquidity in the altcoin market dries up quite substantially, so investors should exercise caution. He believes that a correction would cause altcoins to go down on both their US dollar pairs and their Bitcoin pairs.

Despite the warnings, Cowen believes that Bitcoin season is still in full swing. The flagship cryptocurrency has outperformed major altcoins in the last 60 days.

Also Read: Bitcoin Price Prediction 2023, 2024, 2025, 2026 – 2030

Considering the market predictions, the Bitcoin season may start from June to July, which may be the right time to take a dip. Forward-thinking investors might even consider entering the market earlier in anticipation of this trend.

However, the current trend of Bitcoin shows dominance at 42% to 22-month peaks close to 49%, indicating Bitcoin’s share of the overall crypto market has risen significantly since the beginning of the US banking crisis.

Optimism for Crypto in 2023

The ongoing banking crisis has raised expectations of more Fed liquidity easing, meaning a dollar depreciation. Many analysts expect 2023 to be optimistic for crypto due to currency weakening and interest rate changes.

At the time of writing, Bitcoin is trading at $29,333, up 0.82% in the last 24 hours. 

And finally, he concluded, 

“In the year before the halving, when there are price fluctuations in the Bitcoin/US dollar [pair], liquidity in the altcoin market dries up significantly.”