Bitcoin (BTC) is trading at approximately 75% below its all-time high, but well-known cryptocurrency researcher Benjamin Cowen claims the bears are weary.
In a video posted to YouTube, Cowen explains to his 779,000 followers that the bears are losing steam despite Bitcoin’s continued decline in price, as evidenced by the supply in profit and loss ratio.
X-Factors in Bearish Dominance Downturn
The bear market is losing momentum as it continues to decline. While it was originally predicted that the bear market would see a surge in enthusiasm before experiencing a significant decline, this has not been the case.
Instead, the bear market has lost steam as it has progressed, with each successive decline seeing a decrease in momentum.
In summary, the bear market’s momentum is diminishing.
What’s Next for BTC Price?
After bears lose momentum, the consolidation phase, which precedes the start of a bullish cycle, is what happens next, according to the crypto guru.
“Major momentum on those initial leg downs. As we go lower, they lose momentum, and finally the bulls sort of balance out the bears. We then enter the phase of lengthy accumulation, and from there, we prepare for the subsequent cycle.
The cryptocurrency industry has faced several challenges in 2022, including the failure of startups and a difficult macroeconomic environment. However, Cowen believes that the current bear market is similar to previous bear markets in the industry.
Despite the difficulties faced by companies like Celsius, FTX, Terra (LUNA), and BlockFi, and the fear, uncertainty, and doubt surrounding the industry, Cowen believes that the bear market is not significantly different from previous ones. It is worth noting that a recession may be on the horizon, but this has not had a major impact on the bear market so far.
Some experts, including Benjamin, are optimistic about the future of Bitcoin in 2023. Inmortal predicts that Bitcoin will experience significant growth, rising from $3,000 to $14,000 as it did earlier this year.
However, the majority of users surveyed (83.11%) expect 2023 to be a bearish year due to the bankruptcy of FTX, the largest crypto exchange.
While the industry appears to be recovering from this event, a minority of respondents (16.89%) remain negative about the outlook for 2023.