A widely followed crypto analyst says that Bitcoin’s (BTC) current correction is reminiscent of its price action about five years ago.
In a new interview with financial and tech YouTuber David Lin, crypto strategist Benjamin Cowen says that the social risk metric indicates that the crypto king is following in the footsteps of its price action from 2019.
[adinserter block="1"]According to Cowen, the number of people watching crypto YouTube channels has dipped significantly, signaling that it could reverse course and rally as it did in 2021.
“I think it’s more similar to 2019 and there’s a couple of reasons for that – one reason [is] if you go look at one of the one of the metrics I follow, the social interest in the crypto space, [which is] essentially made up of like people that watch crypto YouTube channels…
You’ll see that back in 2021, when we had these this mania phase, you can see that a ton of people were piling in to watch crypto YouTube, [some] channels were averaging at the time about four million views per day – now those same channels are only averaging around 850,000 views per day…
You go back and you look at the social risk… you can see that social risk came down to a low and then it bounced, it looks very, very similar to me like 2019.”
However, Cowen goes on to note that the crypto markets have yet to see the same mania displayed in 2021 as retail investors have yet to return to the industry.
“I don’t really think that what we just experienced was a 2021 style mania phase because retail never really returned, which has been one of the interesting things, it’s been one of the really confusing things about the market I think for a lot of people because Bitcoin went to all-time highs but we never really saw that the return of retail.
And again, one more piece of evidence to suggest that 2019 is not the worst comparison, it’s actually a very similar move in terms of [percentage]…
If you were to take a price range from the low in 2018 till that 2019 top, about a 350% rally. Same thing we just saw from the rally in 2022 until early 2024.”
Bitcoin is trading for $58,732 at time of writing, a 1.84% decrease during the last 24 hours.
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