© Reuters. Prominent Bitcoin Analyst Benjamin Cowen Shares 4 Lessons From Past On How To Survive Bear Market
Prominent cryptocurrency analyst Benjamin Cowen has shared his thoughts on his YouTube channel about the lessons that can be learned by investors from the previous Bitcoin (CRYPTO: BTC) cycles.
Cowen suggested how investors can view the downside risk as an opportunity and manage it if it comes to play.
1. Do not be deterministic about anything, except maybe Bitcoin turning up with time: Cowen said one of the lessons he learned from the past was not to be deterministic about anything. The analyst noted he was very adamant that Bitcoin would not touch the $100,000 level in 2021, but felt it could happen at one point when everyone was calling for it.
2. Accept the fact when in a bear market: Cowen noted that the hardest part for people was to accept that it is a bear market and to continue buying altcoins every single week amid expectations they will skyrocket.
When Bitcoin is in a downtrend below its bull market support band and gets rejected time and again, altcoins generally bleed worse than Bitcoin, the analyst cautioned.
See Also: How To Buy Bitcoin (BTC)
3. Always have some cash on hand: The analyst said investors must always have some cash on hand so that even if cryptocurrency prices go lower, a percentage of the cash can be allocated towards the market.
4. Be prepared in case Bitcoin does not hold on to its fair value: Cowen noted that Bitcoin has now come down to the fair value, investors should be prepared in case the apex cryptocurrency does not hold on to it.
He noted that the fall of the Bitcoin bull market support band below the fair value marked the end of the bear market in the second and third cycles.
“We could be looking at a potential capitulation bottom in the next couple of months,” Cowen said, adding the cryptocurrency’s capitulation to the 200-week moving average would present a huge buying opportunity.
Price Action: Bitcoin is down 0.6% during the past 24 hours, trading at $39010.47 at press time.
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Prominent Bitcoin Analyst Benjamin Cowen Shares 4 Lessons From Past On How To Survive Bear Market
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