Bitcoin may be facing a massive correction, according to crypto analyst Benjamin Cowen, who has a large following on YouTube. Cowen points to the extension from the 20-week simple moving average (SMA) as a bearish indicator for the leading cryptocurrency. He warns that Bitcoin’s current price level suggests a potential correction that could bring it back down to the bull market support band, which ranges between $72,000 and $80,000.
The analyst also suggests that the correction could be more severe than anticipated, with Bitcoin potentially retesting a trendline that would send its price down to $60,000. Cowen recalls past occurrences where Bitcoin had a similar pattern of lower highs, breakouts, and backtests, leading to major drops in price. He highlights the possibility of Bitcoin spending more time at its current price level before potentially setting a new all-time high, but also warns of the risk of backtesting the trendline.
As of the time of writing, Bitcoin is trading at $98,610, up 5.8% in the last 24 hours. Cowen’s analysis serves as a cautionary reminder for investors to be prepared for potential price fluctuations and corrections in the cryptocurrency market. By staying informed and monitoring key indicators such as the 20-week SMA, investors can better navigate the volatile nature of Bitcoin and make informed decisions about their investment strategies.
To stay updated on the latest developments in the crypto market and receive alerts directly in your inbox, subscription services are available to provide timely information. By following reputable sources on various platforms such as X, Facebook, and Telegram, investors can access valuable insights and analysis to help them make well-informed decisions. Understanding the risks and volatility associated with cryptocurrencies is essential for anyone considering investing in Bitcoin or other digital assets.
In conclusion, the warning from crypto analyst Benjamin Cowen about a potential Bitcoin correction highlights the importance of closely monitoring key indicators and historical patterns in the cryptocurrency market. While Bitcoin has shown remarkable growth and resilience over the years, it is not immune to corrections and price fluctuations. By staying informed, diversifying their portfolios, and being prepared for market volatility, investors can navigate the challenges of the crypto market and make strategic investment decisions. It is essential to approach cryptocurrency investments with caution and a thorough understanding of the risks involved to minimize potential losses and maximize opportunities for growth.
