Crypto analyst Benjamin Cowen is predicting a potential Bitcoin (BTC) price drop. He’s basing this prediction on historical patterns.
Golden Cross, Red Flag?
Cowen, who boasts nearly 900,000 YouTube subscribers, points to the formation of a “golden cross” on Bitcoin’s daily chart. This happens when the 50-day moving average crosses above the 200-day moving average – a usually bullish signal. However, Cowen notes that past golden crosses have often been followed by significant price drops, or “dumps,” in Bitcoin’s price.
Past Performance, Future Prediction?
He cites several instances since 2015 where golden crosses preceded Bitcoin corrections, sometimes resulting in double-digit percentage drops. Cowen suggests that the excitement surrounding a golden cross often leads to over-optimism and inflated price predictions, making a subsequent pullback almost inevitable. He believes this acts as a market correction, tempering excessive enthusiasm.
The Bottom Line
Cowen’s analysis suggests that a 10-15% drop in Bitcoin’s price could be on the horizon, following the recent golden cross. Bitcoin is currently trading around $110,911. Remember, this is just one analyst’s opinion, and the cryptocurrency market is notoriously volatile. Always do your own research before making any investment decisions.
