Popular crypto strategist Benjamin Cowen is questioning the sustainability of the current Bitcoin (BTC) rally based on historical precedence.
Cowen tells his 782,000 YouTube subscribers that Bitcoin could replicate its early 2020 trajectory where the flagship crypto asset initially rallied before plunging significantly.
[adinserter block="1"]Bitcoin reached a high of $10,500 before plunging to a low of around $3,800 between February and March 2020.
According to Cowen, Bitcoin’s behavior in early 2020 is relevant to the current period since it is the only other time in its history that the flagship crypto asset has experienced a recession or recession-like conditions.
“If you think back to what happened in 2020, this here [first quarter of 2020] was a very brief recession. I still remember in this range back over here, there were actually a lot of people that were quite bullish going into early 2020. And if you go back and look at what people were saying back then, a lot of signals were flashing that this was the start of the new bull market…
One thing to keep in mind is that this here [Bitcoin falling from $10,500 to $3,800 in early 2020] happened during the only recession that we have had for Bitcoin. It was very, very brief.”
According to Cowen, the price of Bitcoin could range between $16,000 and $30,000 for a “while” before a clear direction can be determined.
“You could always see something similar where Bitcoin spends a while in this range [~$16,000 – $30,000] and then it eventually comes down into a recession. It could sweep the lows, it could put in a higher low, it could put in a lower low.”
Bitcoin is trading for $23,069 at time of writing.
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