Analyst Benjamin Cowen believes Bitcoin (BTC) could crash by double digits from current levels despite staging a significant rally from 2022 lows.
In a new interview on The David Lin Report, Cowen says that Bitcoin could either retest the November low of around $15,500, a correction of over 40%, or drop even further.
“I think that there is a serious case to be made of a potential double bottom like we had back in 2015. So I think you could see something like that. I also think you could see potentially a slightly lower low, potentially a few thousand dollars below the prior low…
I would be looking toward a potential retest of the prior lows and depending on how bad a theoretical recession is you could in fact see a new low…
I think we’re going to get one more scare. Whether it’s a double bottom, a lower low, it’s hard to say.
But I do think the max downside is likely going to only be a few thousand dollars below the current low.”
Bitcoin is trading at $28,359 at time of writing.
On the former Coinbase chief technology officer Balaji Srinivasan’s $1 million bet that Bitcoin will hit seven figures in 90 days, Cowen says that the conditions necessary to trigger such a price explosion are unlikely to materialize this year.
“What would need to happen for Bitcoin to really rally on up to, let’s say at least new all-time highs, maybe not $1 million?…
I imagine you’d have some elements of hyperinflation where people might just completely lose trust in the US dollar. Could send it there.
But again, I don’t think that’s a likely scenario for this year. I think we’re much more likely to see rapid disinflation courtesy of a recession in the back half of the year.”
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