Hey folks, crypto enthusiast Benjamin Cowen is waving the caution flag in the world of Bitcoin, and it’s got his 789,000 YouTube subscribers buzzing. According to Cowen, there’s a pattern making a comeback, one that’s made an appearance before the past three Bitcoin halvings.
Cowen dives into the nitty-gritty, breaking it down for his audience. Apparently, Bitcoin has a tendency to take a nosedive to the bull market support band during the first quarter of the halving year. What’s this band, you ask? Well, it’s a combo of the 20-week simple moving average and the 21-week exponential moving average – a dynamic duo helping us figure out possible support levels for Bitcoin during its bullish adventures.
Now, the real talk – if Bitcoin decides to give the bull market support band a little tag, Cowen believes we could be looking at a substantial drop, somewhere around a 15% decline from the current level. Ouch!
But here’s the twist in the tale – whether Bitcoin bounces back from this support band or takes a nosedive past it depends on the good ol’ US of A’s economic health. Cowen’s got historical examples to throw at us – in 2012 and 2016, Bitcoin held onto that support band like a champ. But 2020? Well, we all know what happened. Pandemic, recession, unemployment rates soaring – not a great time for Bitcoin’s support band.
So, the big question is, will the economy do its thing and keep Bitcoin afloat, or will the Federal Reserve push us into a recession, leaving Bitcoin to fend for itself? Only time will tell.
As of now, Bitcoin’s playing around at $42,390. Keep those eyes peeled, folks – the crypto rollercoaster might just be gearing up for another wild ride!