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Investors in the cryptocurrency space are eagerly awaiting the Bitcoin halving to fuel future market growth. However, top cryptocurrency expert and trader Benjamin Cowen Precautions that a correction may occur if the price of BTC follows a previous pattern.
Bitcoin halving could have a negative impact on its price
Cowen has highlighted a trend that could potentially lead to a significant drop in the crypto asset's price as the Bitcoin halving begins, suggesting that BTC could face a decline in the coming days.
According to Cowen, should Bitcoin continue to follow the same course it is on? Spot ETF During the halving, BTC could see a downtrend. The crypto expert argues that these patterns typically do not repeat themselves exactly. However, he believes it is crucial to get the idea out there in case something like this happens again.
A similar trend that could trigger a correction | Source: Benjamin Cowen on X
In response, a pseudonymous user commented on Cowen's post, reminding the expert that he had forgotten the arrow safety. In response to the user, Cowen explained that in his opinion the outcome of the next phase will depend on whether the ALT/BTC pairs have collapsed by then or not.
Furthermore, he reiterates that there could be a postponement above if they are not broken. Meanwhile, in the event that they have collapsed, the pattern can move on to something new.
It is worth noting that the Bitcoin halving is expected to take place within the next 11 days. Given the halving has had a significant impact on the price of Bitcoin so far, BTC could be primed for a significant price increase in the coming days. However, if Cowen's latest prediction comes true, it could paint a different picture for the crypto asset during the halving event.
The expert's prediction has caused a lot of excitement in the crypto community, with analysts like Peter Brandt supporting his findings. Peter Brandt accepted Cowen’s predictions indicate that previous Bitcoin bull markets have shown a similar fundamental trend.
What to Expect During the Halving Event
As the halving event approaches, cryptocurrency data analytics platform Kaiko has started designed a perspective worth paying attention to. Kaiko's perspective looks at the impact the halving has had on BTC price in the short term over the years.
According to the platform, in the past the short-term price effect of Bitcoin halvings was inconsistent. Nevertheless, historical data shows that the coin tends to rise 9-12 months after the halving, which is a generally bullish development.
At the time of writing, the price of Bitcoin is up 8% in the last 7 days and stands at $70,770. However, its total market capitalization has fallen by over 2% while its trading volume has increased by over 8% in the past day.
BTC is trading at $70,733 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from iStock, chart from Tradingview.com
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