Bitcoin’s Potential Downward Price Target in Event of 2019-Style Correction: Analysis by Benjamin Cowen
Crypto analyst Benjamin Cowen recently discussed the potential for Bitcoin’s price to drop significantly if a correction similar to that of 2019 were to occur. In a video update to his substantial YouTube following, Cowen outlined the possible scenario if Bitcoin were to mirror its past performance from about five years ago.
Cowen pointed out that if Bitcoin corrects around its 20-week simple moving average (SMA), it could follow a pattern akin to the one observed in 2019. He highlighted similarities in the price action, mentioning the formation of a high followed by a lower high, leading to a dip below the bull market support band. Subsequently, there could be a rally in August, potentially setting a lower low in September, retracing back to levels seen earlier in the year.
Currently, Bitcoin’s 20-week SMA stands at $65,441. Cowen speculated that if Bitcoin were to repeat its historical movements, it might gravitate towards the 100-week moving average, possibly around the $40,000 mark. This projection is based on the idea that if Bitcoin establishes lower lows in the near future, it could align with the 100-week moving average, reminiscent of the 2019 trend where Bitcoin retraced to around $40,000 after facing resistance at the bull market support band.
As of the time of writing, Bitcoin is trading at $62,933, reflecting a 5.13% increase over the last 24 hours. Cowen’s analysis suggests a potential downward movement for Bitcoin if historical patterns repeat, emphasizing the importance of monitoring key moving averages and support levels to gauge the cryptocurrency’s future trajectory.
While these projections are based on historical data and technical analysis, the cryptocurrency market remains highly volatile and subject to rapid fluctuations. Investors and traders are advised to conduct thorough research and consider the risks involved before making any investment decisions in the cryptocurrency space.
In conclusion, Cowen’s insights provide a valuable perspective on potential price movements in the Bitcoin market, highlighting the importance of understanding historical patterns and key technical indicators in navigating the volatile world of cryptocurrencies.
