A widely followed analyst says crypto king Bitcoin (BTC) could face a deep correction.
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 the $30,000 level as support during its rise above $60,000, leaving the door open for BTC to lose 50% of its value.
“Even those who like to use the 2016 analogue should remember that after breaking out of these areas [Bitcoin] would then come back down and test it as support.
The problem now is that this area is at $30,000 and can fall from there [current levels] is approximately a 50% decrease. A 50% decline is exactly what we achieved in 2019.”
Cowen also says that the current Bitcoin rally appears to be unsustainable as BTC is only rising without creating a base of support.
“I think the problem is that Bitcoin is not building any real support. When there are extended bull markets, after it breaks out, it often tests it as support.
Once it gets to the point where it’s no longer being tested as support and it just gets into these blow-off tops, you get these nasty bear market corrections.”
Source: Benjamin Cowen/YouTube
Bitcoin is trading for $64,707 at the time of writing, up nearly 3% in the last 24 hours.
Don't miss a thing – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
Generated image: DALLE3
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.