Bitcoin Bottom Reached And On Its Way Up, According to Analyst

Bitcoin Bottom Reached And On Its Way Up, According to Analyst

Crypto analyst Benjamin Cowen is taking another look on the Bitcoin market in his latest YouTube video called “Bitcoin: Through the Eyes of the Stock Market”. By steering away from the usual Bitcoin-USD pricing analysis, Cowen reveals that Bitcoin might have already reached its bottom and is on its way up.

“There is a whole slew of other assets that we can be measuring it against.”

Speaking to his 679,000 large audience, the analyst puts BTC against the S&P 500. And despite many still believing the market is still in bearish sentiment, Cowen states that Bitcoin has actually already hit critical support when analyzing against the S&P 500 performance.

“But if you look at Bitcoin divided by the stock market, we’re actually testing those levels. We’re actually testing the levels that we tested back in September, already. So, some people are sitting here waiting to say that ‘Okay we have to go back down to this level,’ and you could be right. It’s certainly possible to go back to $40,000. It’s certainly possible to go back to $42,000.

Anything is possible with investing in general. All models are wrong. Some are useful, I have no idea what’s going to happen tomorrow. Bitcoin could go to $40,000 tomorrow, and it could go to $55,000 tomorrow. What’s interesting in this analysis is that we’re actually testing those levels that we were [in September].”

Adding in the fact that the money supply keeps increasing, the analyst adds that Bitcoin can be be viewed as undervalued and due for another uptrend, because it appears to trade sideways rather than in a straight upward line when considering the S&P. While it may cost more USD to buy certain stocks, the underlying value does not change, Cowen says.

“With all this money printing and inflation, and the idea that maybe stocks aren’t necessarily worth more because they’re fundamental more but maybe the US dollar is worth less, could this be a measure of some type of inflation and how we can then maybe relate it to Bitcoin and say… based on this, Bitcoin is testing where we were back in September.”

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Source: igaming