Benjamin Cowen, a well-known analyst of cryptocurrencies, has set a price goal for bitcoin (BTC) in case its value drops.
In a new strategy session that Cowen posted on YouTube, he told his 783,000 followers that the value of bitcoin could drop by more than 47% from where it is now in the worst case.
Cowen: The short bull run could come to an end
Cowen says that bitcoin could recover in the next few months. After that, it could backtest a diagonal trendline, which would put the price of the most popular cryptocurrency at $12,000 in August 2023.
Cowen says that if November wasn’t the bottom, BTC might again follow the trendline from 2022 to reach the subsequent low in August 2023. By then, it might have broken through a $26,000 resistance in the months before August, setting the bottom at $12,000.
Cowen: What does the 50-week MA say?
Cowen then looks at the price of bitcoin around the 50-week moving average while looking at the charts to figure out how likely it will go below the current low in November 2022.
The expert says that the 50-week moving average has been a critical sign of resistance during a long bear market, and it may soon be about to do so again.
Cowen says that the 50-week plan often needs to be revised, at least on the first try. In 2019, though, the markets might be able to pass it, though they were hesitant for about a month before they did.
He says that the 50-week is now just over $25,000, the same as the previous local high, which happened in January 2022. Cowen thinks that another break over the level that is now resistance could still occur before the drop. This is not the first analysis to show that a bear market could happen, and many people worry that it could happen again in 2023.
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