Bitcoin Downtrend Duration Before Bullish Reversal Predicted by Analyst Benjamin Cowen

A prominent analyst in the crypto space has shared insights on the potential timeline for Bitcoin’s shift towards a bullish trend. Benjamin Cowen, a well-known crypto strategist with a substantial following on YouTube, recently discussed the possibility of Bitcoin exhibiting bearish price movements until the conclusion of 2024.

In his latest video update, Cowen suggested that the ongoing pattern of lower highs and lower lows in Bitcoin’s price trajectory could persist for the remainder of the year. He speculated that a significant shift towards bullish territory might not materialize until the Federal Reserve implements interest rate cuts amounting to at least 75 basis points, drawing parallels from past market cycles.

Anticipated to commence the rate-cutting process in September, the Fed’s actions are closely monitored by market participants for their potential impact on Bitcoin’s price dynamics. Cowen also outlined a scenario where Bitcoin could break free from its bearish trend earlier than expected, possibly in October, as a response to rate cuts that surpass market expectations.

Cowen elaborated on the optimistic scenario where a deviation from the bearish pattern could occur as early as September if the Federal Reserve’s rate cuts drive interest rates below a certain threshold. However, he highlighted a more moderate projection that aligns with historical trends, suggesting that a substantial reversal in Bitcoin’s price trajectory might not materialize until the end of the year, following multiple rounds of rate cuts.

The analyst pointed out that during the previous market cycle, it took a cumulative reduction of 75 basis points in interest rates to trigger a shift in Bitcoin’s price dynamics. Given the potential pace of the Federal Reserve’s rate adjustments, Cowen speculated that the awaited bullish momentum might manifest in January 2025 after a series of rate cuts throughout the latter part of 2024.

As of the latest update, Bitcoin is trading at $59,162, showing a slight uptick over the past 24 hours. The crypto market continues to be influenced by a range of factors, including macroeconomic policies and global market trends, which could shape Bitcoin’s price movements in the coming months. Investors and analysts alike are closely observing these developments for cues on the future direction of the cryptocurrency market.