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.”
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.
Generated Image: Midjourney
