Bitcoin May Face 23% Correction: Analyst Benjamin Cowen
Bitcoin Warning Issued by Benjamin Cowen
• Benjamin Cowen, a widely followed crypto analyst, warns that Bitcoin (BTC) and other crypto markets have history working against them which could lead to a large correction in prices.
• He shares a chart showing how BTC’s current year-to-date return on investment (ROI) is tracking the same pattern as 2015 and 2019.
• If this pattern holds true, Cowen gives a target of $23,000 for Bitcoin or about a 23% drop from current levels.
History Suggests BTC Heads Much Lower
Crypto analyst Benjamin Cowen says that Bitcoin (BTC) and crypto markets don’t have history on their side right now, and are facing the threat of a hefty correction to the downside. Cowen tells his 751,000 Twitter followers that even with this year’s rally, BTC is still following the same bear market patterns of 2015 and 2019.
Cowen shares a chart plotting Bitcoin’s current year-to-date return on investment (ROI) overlayed with the average of the same metric for 2015 and 2019. He states “If we hit the lows of the 2015/2019 average, it would mean BTC going back to $23k sometime later this year.” The same pattern was also seen for Ethereum (ETH).
Cowen’s Analysis
In a recent video update, Cowen said that Bitcoin and altcoins in general were in the same type of bear market bounce that they went through in previous cycles, rather than the beginning of a bull run. He further explains “My view is that until proven otherwise, the altcoin market is still no different than what we have previously seen… My guess is that the Bitcoin dominance rally will eventually continue. It might be backtesting that 49% to 50% level, but my guess is that it will eventually continue.”
Conclusion
The outlook from Benjamin Cowen suggests that there could be much lower prices ahead for bitcoin if it follows historical trends from 2015 and 2019. This could mean an eventual drop back down to $23k for bitcoin at some point later this year if these trends hold true. However it remains to be seen how accurate this prediction will be given volatile nature of cryptocurrencies.