Cryptocurrency analyst Benjamin Cowen is issuing a warning on Bitcoin (BTC) as the flagship digital asset hovers below $100,000.
In a new video, Cowen tells his 858,000 YouTube subscribers that a continued rise in the yield on the US Treasury 10-year will have a bearish impact on Bitcoin.
According to Cowen, Bitcoin could behave similarly to what happened in the second half of 2023 when the crypto king plunged below a range low at around $30,000 and stayed subdued for weeks.
“…watch the 10-year yield if it keeps going up it’s going to be a headwind for Bitcoin…
…what happened [in 2023] was Bitcoin went all the way up, it came back down but eventually it really dropped below $30,000 and stayed below $30,000 for a number of weeks. And because of that the market got weaker and weaker and weaker until it sold off and found demand down here [below $25,000].”
According to Cowen, Bitcoin could drop by up to 28% from the current level if its price action mirrors that of 2023.
“So if Bitcoin has to follow that [2023] blueprint, which is not even at the same time of the year when you would normally see something like that, but if it does because the 10-year yield just does not relent, then you would likely see Bitcoin spend some time around $88,000, $89,000 for a while before going back and testing maybe $70,000 right and then trying to find support there.”
The widely followed analyst further says that Bitcoin’s price action around the $100,000 level will likely determine the flagship crypto asset’s short-term trajectory.
“So I think $100,000 is going to be kind of the line in the sand… [if] Bitcoin gets rejected again [at $100,000] and it comes back down here and gets below $90,000 then this [2023] outcome is more likely where it just follows what the S&P [500 index] did and the Russell [2,000 index] did and gives back those post-election gains in the short term.”
Bitcoin is trading at $96,900 at time of writing.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
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 losses 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
