Analysis

History Suggests Massive Bitcoin Correction Underway, According to Analyst Benjamin Cowen

Analyst Benjamin Cowen believes Bitcoin (BTC) is about to enter a correction part much like prior market cycles because the crypto king teeters at $40,000.

In a brand new technique session, Cowen tells his 789,000 YouTube subscribers that Bitcoin has traditionally skilled an enormous market correction because it approaches the halving.

Each 4 years, Bitcoin undergoes a halving occasion, when miners’ rewards are reduce in half. The subsequent halving is anticipated in April.

In keeping with Cowen, the pre-halving correction sometimes sees Bitcoin dropping to check the 100-week easy shifting common (SMA).

“We’ve additionally examined the 100-week SMA round this timeframe, both the late a part of that pre-halving yr or the early part of the halving yr. We examined it proper right here [around November 2011] in that cycle, simply earlier than the halving yr arrived. Two cycles in the past [in 2016], we examined the 100-week SMA in January, February of the halving yr.

After which final cycle [in March 2020] we examined it.

You possibly can say, ‘Effectively, we solely examined it due to the pandemic,’ but it surely’s occurred to each cycle. And we even fell beneath it. Neglect testing it. We went to the 100-week SMA after which we proceeded to fall one other 45% from there final cycle…

Guess the place that may put you at this time? A forty five% drop beneath the 100-week SMA [at $28,176], that may put you again on the prior low [at $15,355].”

Supply: Benjamin Cowen/YouTube

Bitcoin is buying and selling for $40,004, down about 3% within the final 24 hours.

See also  Bitcoin Backs Down: Ethereum Market Dominance Soars

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