Bitcoin Could Face Significant Downturn, Says Analyst Benjamin Cowen
In a recent assessment, crypto specialist Benjamin Cowen has expressed a pessimistic view on Bitcoin (BTC), particularly following a slight price correction of under 10% in the past week. Cowen’s observations offer valuable insight for investors navigating the turbulent crypto market.
Addressing his audience of 814,000 YouTube subscribers, Cowen points out that Bitcoin’s failure to break through the upper trend line, which has outlined a pattern of lower highs since March, could lead to a notable decline of approximately 32%. He cautions that if Bitcoin faces rejection at this upper trend line once more, the price may drop to around $42,000, in accordance with a lower trend line established by previous lower lows during the same period.
Cowen explains, “If Bitcoin faces rejection here [upper trend line] and declines, attention needs to return to this lower trend line [lower trend line]. By examining the lower end of this trend line, perhaps by December, Bitcoin’s price could hover around $42,000.” Additionally, he notes that this price level aligns with the 100-week moving average, which he anticipates to be at a similar level in the coming months.
During Cowen’s analysis, Bitcoin was trading at about $61,760. He suggests that a failure to break the existing lower high pattern might see Bitcoin following a price path akin to previous market cycles. He recalls that Bitcoin retraced to the 100-week moving average during previous downturns in Q4 of 2019 and Q1 of 2016, underscoring the significance of this trend line as a potential support level.
The current market conditions are crucial in interpreting the implications of Cowen’s evaluation. Bitcoin’s recent price shifts suggest a market struggle, with investors exercising caution amid broader economic uncertainties. Should Cowen’s forecast come to pass, it could signal a change in market dynamics, impacting not just Bitcoin but the wider crypto ecosystem.
In summary, Cowen’s assessment underscores the perils facing Bitcoin as it approaches a pivotal point in its price trajectory. Investors are urged to stay vigilant and factor in these insights when navigating the ever-changing crypto market. Remember, thorough research is imperative, as cryptocurrency investments are inherently risky.
