A widely followed analyst says that a gut-wrenching correction may be in the cards for the crypto king Bitcoin (BTC).
In a new video update, crypto strategist Benjamin Cowen tells his 792,000 YouTube subscribers that BTC has a history of retesting previous macro resistance levels as support before climbing higher.
According to Cowen, Bitcoin did not retest $30,000 as support during its climb above $60,000, leaving the doors open for BTC to lose 50% of its value.
“Even for the people that like to use the 2016 analog, remember that after breaking out of these ranges, [Bitcoin] would then come back down and test it as support.
The problem now is that this range there at $30,000, to drop from [current levels] is about a 50% drop. A 50% drop is exactly what we got in 2019.”
Cowen also says that the current Bitcoin rally looks unsustainable as BTC is just moving higher without creating any base for support.
“I think the issue is that Bitcoin is not really building out any real support. A lot of times when you have these longer bull markets, after it breaks out, it likes to test it as support.
Once it gets to the point where it’s not testing it as support anymore and it just goes into these blow-off tops, that’s when you get these nasty bear market corrections.”
Bitcoin is trading for $64,707 at time of writing, a nearly 3% increase in the last 24 hours.
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