Widely followed crypto analyst Benjamin Cowen is mapping out how low Bitcoin’s (BTC) price could dip if a 2019-style correction unfolds.
In a new video update, Cowen tells his 803,000 YouTube subscribers what could happen if the crypto king’s chart plays out like it did about five years ago.
[adinserter block="1"]According to Cowen, if the top crypto asset by market cap corrects at the area near its 20-week simple moving average (SMA), BTC could follow the pattern it did in 2019.
“There are a lot of similarities in terms of how it ultimately played out [in 2019], where you get a high and then you get a lower high and then you capitulate below the bull market support band. And then you sort of rally back up in August, potentially set a lower low in September where it then comes back down to where we were in January…
So if we get a rejection off the 20-week SMA and then we do put in a lower low compared to where we are now, then then you kind of have to be like ‘All right well the 2019 comparison was valid.'”
Bitcoin’s 20-week SMA is currently hovering at $65,441.
Cowen goes on to say that if the crypto king were to follow in its former footsteps, it would likely land near the 100-week moving average – or somewhere near the $40,000 price level.
“If Bitcoin were to [start] setting these lows right now, if it were to put in a lower low later on in September, then that would likely correspond to the 100-week moving average which is exactly where it went back over [in 2019] after it got rejected off of the bull market support band, and that would correspond to roughly the yearly open at maybe around $40,000.”
BTC is trading for $62,933 at time of writing, a 5.13% increase during the last 24 hours.
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