Bitcoin Could Be Repeating 2015 Bear Market As BTC Flashes Ominous Signal, According to Top Trader
A popular crypto strategist suggests that Bitcoin (BTC) may be experiencing a similar price pattern to its 2015 collapse following a significant surge. Analyst Benjamin Cowen, in a recent strategy session with his YouTube subscribers, highlights the resemblance between BTC’s strong rally earlier this year and its price movement in 2015.
In early 2015, Bitcoin saw a doubling in value over a few months, rising from around $150 to above $300. Cowen notes that the magnitude of the current rally is more comparable to the one in 2015 rather than the much larger rallies seen in 2019.
If history repeats itself, Cowen warns that Bitcoin could experience a 50% devaluation. He explains that after a significant rally, there could be a double bottom where the price drops without finding support until it reaches the prior low. This scenario occurred in 2015 when Bitcoin declined by 50%. A similar drop today would result in Bitcoin returning to a double bottom.
This warning from Cowen coincides with Bitcoin displaying a death cross on its daily chart. A death cross occurs when a short-term moving average (MA) crosses below a long-term MA while the price candles remain below both MAs. Traders often interpret this as a bearish reversal signal.
Currently, Bitcoin is trading at $25,933.
Hot Take: Will Bitcoin Repeat Its 2015 Bear Market?
Bitcoin’s recent price action has led some analysts to draw parallels with its 2015 bear market. The rally and subsequent drop in 2015 showed similarities to the current situation, according to crypto strategist Benjamin Cowen. If history repeats itself, Bitcoin could experience a significant devaluation of around 50%. Additionally, the recent death cross on the daily chart adds to the bearish sentiment surrounding BTC. While these indicators suggest potential downside risk, it remains to be seen if Bitcoin will truly repeat its 2015 bear market or defy expectations.
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