ADA Downtrend May Last Five Months, Says Analyst Benjamin Cowen

Benjamin Cowen, a well-known crypto expert, says that Cardano’s (ADA) bear market probably has a long way to go before it hits bottom.

Cowen says in a new strategy session that, based on past market trends, ADA may not find a bottom until the end of 2023.

Cowen also thinks that ADA/BTC is worth keeping an eye on. He says that if the pair goes up to about 0.000004 BTC ($0.11), it could mean that the smart contract system has reached a low point.

“We know we’ve just put in a new low. Again, based on the [last cycle], we know that it can last for another five months or something.

So that’s something to think about. It’s really hard calling bottoms.

I think it’s more important to look at the ADA/BTC valuation and to see if it holds its lows, maybe future lows. Let’s say, if it goes to 400 satoshis (0.000004 BTC), if it can hold those levels, then it might start to justify it. But right now, in my opinion, it’s a little bit harder to justify it.

Not to say that it can’t bounce back up on its USD pair if Bitcoin goes back up, we know that it probably would, but the problem is that, again, if it’s bleeding against Bitcoin, no matter if Bitcoin is going up or down, then the risk-adjusted returns are not as attractive as just holding Bitcoin during this phase of the market cycle.”

Cardano is currently worth $0.26, and since August 2021, when it hit its all-time high of $3.09, it has been going down. The ADA/BTC pair, on the other hand, is worth 0.0000099 BTC ($0.26).