Cryptocurrency analyst Benjamin Cowen is highlighting a technical signal that could trigger a massive leg down for Bitcoin (BTC).
In a new strategy session, Cowen tells his 888,000 YouTube subscribers that Bitcoin could witness a death cross “in about one to two weeks” if the status quo remains.
A death cross is a bearish signal that occurs when an asset’s 50-day moving average crosses below its 200-day moving average.
According to Cowen, a sell-off could precede the death cross.
“There’s plenty of times where there’s a sell-off just before the death cross, just before it… If it happens again, it could be kind of a scary time.”
Based on the trader’s chart, he seems to suggest that a looming death cross foreshadows a Bitcoin correction, as witnessed in 2019 and 2021.
The widely followed analyst also unveils his outlook in the event that his bearish prediction takes place.
“Usually there’s a low around the time of that death cross and depending on how low the price is at that time would sort of give us some insight into the fate of the next rally – whether it’s a rally to a new high or just a counter-trend rally to a lower high.”
According to Cowen, a drop below $70,000 could mean that Bitcoin has broken the market structure and will not rise above the current all-time high of around $109,000.
“…[BTC could] resolve to a lower high if Bitcoin goes into the $60,000s, especially the low $60,000s… …if it’s like $63,000, it’s going to be hard to ignore.”
If Bitcoin carves a local bottom above $70,000, Cowen says,
“If it holds above $73,000, then there’s no guarantee with the market, but it would suggest that the structure of the market remains intact.”
Bitcoin is trading at $85,052 at time of writing.
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