Expert predicts the fall of the cryptocurrency market before its growth
A well-known analyst in the community, Benjamin Cowen, expressed the opinion that the rate of cryptocurrencies could begin to grow very soon. However, until this moment, the digital asset market will still significantly subside.
The expert believes that now it would be wise to prepare for a repeat of the events of 2018. Then the first crypto coin significantly lost in price, and then in several stages the cost of bitcoin recovered slightly in order to survive the sharp drop to the lows of that cycle again. And only after all these movements did the BTC rate begin a confident recovery.
“Even at the beginning of the year, we urged not to try to “find the bottom” as quickly as possible. After all, during a bearish trend, the market is constantly like this — a fall, consolidation, a slight increase, but then a new fall. We are looking for simple signals — the intersection of the 200-day moving average and the Bitcoin chart,” the analyst said.
Cowen believes that another intersection of the charts should be expected around December 25th. In his opinion, that is when the first cryptocurrency will hit the bottom.
“Of course, I cannot say that all this will come true to the minute. But much speaks in favor of such a scenario. The current bearish trend lasts about a year and, historically, the fall of the Bitcoin market lasted for a year. In 2014, the bearish trend lasted 14 months, and in 2018 it lasted 12 months. In general, there will soon be a good period of time to start growth,” the expert believes.
And the head of Ernst & Young Global Blockchain, Paul Brody, is sure that for the first time, fluctuations in cryptocurrency rates do not have a significant impact on the long-term growth of the industry. According to the expert, the current crypto winter is softer and does not affect the market so critically.
Brody believes that there is now a smooth transition from the purely speculative and financial focus of the industry to the dominance of its technological component. The expert also stated that user behavior is largely focused on the benefits that the cryptocurrency infrastructure can offer, and not just on short-term financial gain.
“Crypto asset management should be simple enough and use a carefully tested approach for people to follow. I would like to see more regulation and rules that good players can follow,” Brody concluded.