Analyst: We Will See The Real Price Of Bitcoin In This Date!

Analyst Benjamin Cowen says that the cryptocurrency market is 50% off the price it deserves. He shares his claims about when the Bitcoin price will rise to its “fair value”.

“50% below the real value of Bitcoin”

The prominent crypto analyst says Bitcoin (BTC) is largely undervalued. In a recent interview with Real Vision Crypto, he attributes the market’s depreciation to the logarithmic regression model. Sharing the chart below, Cowen says his market is currently 50% off the price it deserves:

I’ve shown this chart several times before. The overall market cap for cryptocurrencies is shown in the blue line. The faithful logarithmic regression trendline is represented by the red line. The basic principle is that we bounce around the fair price of the cryptocurrency market, which is expected to grow monotonously over time. According to the information, we are currently 50% free compared to our fair value.

Long-term investors can see the current prices of the cryptocurrency market as an opportunity. But Cowen says there’s still a 15% chance of a drop:

But the chart also hints that precious bottoms typically approach an estimated 60% to 65% undervalue before we can sustain another bull market actively…We need some more time before we actually get out of this bear market.

Here is the date when the bulls will take the stage again

Regarding Bitcoin, Cowen assumes that it will likely take more than 14 months for the leading cryptocurrency to return to its fair value:

Bitcoin’s price has always been at its fair value when it halved. As a result, whenever there is a bear market, we fall below the fair value and the price returns to that level during the next Bitcoin halving. So I argue that this will happen so that we get back to fair value; My bet would be 2024. Early 2024 is my best bet.

Whale processes peak while prices are at the bottom

Both Bitcoin and Ethereum have seen major processes taking place when investors were at a huge loss. According to Santiment, Bitcoin reached the lowest loss-to-profit ratio in 4.5 months. Ethereum, on the other hand, recorded historical lows.

Here, investors opened large short positions, as evidenced by the funding rates. Santiment noted that liquidations tend to be common and that surprise jumps can occur in such scenarios. This means that the market could be in a rebounding state.

In the middle, whale watching bot Whalemap marked a process involving 32,000 BTC. These whales have been dormant since 2018. As you follow, experts like Benjamin Cowen expect more than one Bitcoin to decline in the short term. However, like Cowen, a more positive picture emerges in the long run.

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