The bear market for Cardano (ADA) could last another five months, according to popular analyst Benjamin Cowen. In a new strategy session, Cowen shares that – based on previous market cycles – Cardano could use the full year of 2023 to find an absolute bottom for its bear market. Furthermore, the analyst thinks it may be interesting to keep an eye on the ADA/BTC trading pair.
If that trading pair hits 0.000004 BTC ($0.11), it could be a bottom signal for the smart contract platform.
Five more months
After reaching a new low for Cardano, according to the analyst, it may take another five months before the currency hits its absolute bottom. “We know that we just had to record a new low. Again, based on the last cycle, we know this could continue for another five months,” said Cowen.
In that respect, the analyst concludes that it is very difficult to determine bottoms for the digital currency. “I think it is especially important to keep an eye on the ADA/BTC trading pair and see if it manages to hold these lows and not fall further,” the analyst continues.
If Cardano manages to monitor the course of 400 Satoshi, that could be a plus, but according to him the project is not going well at the moment. “That does not mean that there can be a bounce in US dollars if the Bitcoin price starts a new increase,” he is also positive.
Bitcoin is more attractive
Even if that is the case, he believes it is more attractive to hold Bitcoin based on risk management. After all, then you benefit from the possible fall in the US dollar exchange rate AND from the weakness that Cardano is currently showing compared to Bitcoin.
Of course, Cardano’s weakness is also inseparable from the US Securities and Exchange Commission’s (SEC) lawsuit, which designated the project as an asset in the cases against Coinbase and Binance.
In theory, this could mean that the token will disappear from various exchange platforms. Robinhood already announced that Cardano would disappear from their platform, but in the past Coinbase did the same with XRP.
In that respect, holding Cardano seems to entail a considerable risk at the moment, but these are often times when a lot of profit can be made. Ultimately, nothing is certain in the financial markets.
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