Cryptocurrency Analyst Benjamin Cowen Warns of Potential Bitcoin Drop
Cryptocurrency analyst Benjamin Cowen is cautioning that a pattern observed before the previous three Bitcoin (BTC) halvings has resurfaced. According to Cowen, Bitcoin historically falls to the bull market support band during the first quarter of the halving year. The bull market support band is an indicator that combines the 20-week simple moving average and the 21-week exponential moving average, identifying potential support levels for Bitcoin’s price during a bull market.
Cowen suggests that if Bitcoin reaches the bull market support band, it could experience a double-digit percentage drop from its current level. He explains that whether this band acts as a support level or if BTC falls below it will depend on the state of the US economy.
Bitcoin is currently trading at $42,390.
Hot Take: Potential Drop in Bitcoin Price
Cryptocurrency analyst Benjamin Cowen warns that Bitcoin may follow a pattern observed before previous halvings. If history repeats itself, Bitcoin could see a significant drop of around 15% from its current level if it reaches the bull market support band. However, whether this band will act as a support level depends on the state of the US economy. If the economy holds up, Bitcoin may bounce off the support band. Conversely, if the economy falters due to factors like a recession, the support band may not hold up. Bitcoin is currently trading at $42,390.
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