A Potential Bitcoin Correction on the Horizon, Analyst Warns
A popular crypto analyst, Benjamin Cowen, believes that a correction could be looming for Bitcoin (BTC) due to a particular indicator. In his latest strategy session on YouTube, Cowen explains that BTC recently flashed a golden cross, which has historically signaled an impending price decline.
A golden cross occurs when an asset’s 50-day moving average crosses over its 200-day moving average and is typically viewed as a bullish sign. However, Cowen points out that Bitcoin has often experienced a pullback after the golden cross signal.
Cowen emphasizes that while this doesn’t guarantee a downward trend, it is worth noting that previous golden crosses have been followed by initial price drops. He cites the example of the last golden cross in February, which led to an 8% to 9% decline in Bitcoin’s price.
Key Support Level to Watch
If BTC does experience a pullback, Cowen suggests closely monitoring whether it can maintain support at the $31,000 level. This area will likely attract significant attention from traders and investors as it could indicate whether the recent breakout from the range will hold.
As of now, Bitcoin is trading at around $34,478.
Hot Take: Potential Warning Sign for Bitcoin Investors
Crypto analyst Benjamin Cowen has raised a potential red flag for Bitcoin investors with his observation of a golden cross indicator. While this indicator typically signals a bullish trend, history has shown that Bitcoin often experiences a pullback after such occurrences. Cowen’s analysis suggests that a correction may be on the horizon for BTC.
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