Widely followed crypto analyst Benjamin Cowen is setting a price target for Bitcoin (BTC) if it were to collapse.
In a new strategy session, Cowen tells his 783,000 YouTube subscribers that in a “worst-case scenario,” Bitcoin could dive by over 47% from its current value.
Cowen says Bitcoin could rally in the coming months and then “back test” a diagonal trendline, putting the king crypto at $12,000 in August 2023.
“If it were August of 2023, like right around here [at $12,000], and it [currently] rallies on up [to $26,000] and then sort of sits up here for a while, and then comes back down and then that ends up being the bottom [at $12,000], it would also actually correspond to hitting this trendline again, the low [in May 2022], the lower low [in November 2022], and then maybe one last low again [in August 2023], if November is not the bottom. This is of course assuming November is not the bottom, which admittedly, again, it could be. So the worst-case scenario is something like that.”
Cowen next looks at Bitcoin’s price related to the 50-week moving average to analyze the possibility of Bitcoin dipping below the November bottom. The analyst says that the 50-week moving average has served as a key resistance indicator after a lengthy bear market during previous cycles, and it may be on the verge of doing so again.
“We’ve got three examples after basically a long bear market. The first one [in 2012], rejection, then a higher low and blast off. The second one [in 2015], rejection, double bottom, then go. The third one [in 2019], we hesitated, got through it, ultimately capitulated back down below it, and then put in a slightly higher low…
Normally the 50-week offers some resistance at least on the first attempt, even in 2019 when we got by it, we still hesitated at it for about a month before making our way through it. Where does the 50-week sit [now]? Just above $25,000, which also corresponds this prior local high right here [in January 2022].”
Bitcoin is worth $22,860 at time of writing.
I
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/urzine/Sensvector
