Analyst Benjamin Cowen, who has a wide following in the cryptocurrency market, warns that Bitcoin (BTC) may experience a 2019-style correction in the coming period. Cowen suggests that price movements observed in the past may repeat a similar scenario.
Cowen shares signs of a significant correction with his followers, specifically highlighting a specific pattern on Bitcoin’s price chart. The model pointed out by the analyst reflects the price movements before the major correction in 2019. According to Cowen, if this pattern repeats, Bitcoin could enter a significant price correction.
“If it gets that candle that completely erases the previous week’s losses and then the next move happens this week, the last week of December, then it will create a very similar type of move to what we saw in mid-2019, right before the first Fed rate cut came. This is something to think about. “Will it turn out the same way, or won’t it?”
The chart shared by the analyst shows that in 2019, Bitcoin fell from approximately $13,000 to $9,167 after creating the pattern he described. The chart also shows that Bitcoin fell below $4,000 in 2019, when interest rates were bottoming out.
Koinfinans.com As we reported on , Cowen also says Bitcoin could hit a local high and then lose value about a month before the Fed cuts interest rates, just like it did in 2019. He says some believe the Fed’s rate cut could come in January, while more believe it will come in March.
“One of the things we noted before was that Bitcoin had reached its local high, again it wasn’t a major high and we didn’t set a new low even after the 2019 high, but that high came before the Fed started cutting interest rates. We’ve been talking about this for probably over a year now. If we draw a line back to the first interest rate drop in July 2019, you can see that Bitcoin actually peaked right before this interest rate drop, about a month ago. Now everyone is guessing when the first interest rate drop will come. Some say the Fed will start reducing interest rates in January. Many people think it will happen in March. Of course, much of this will depend on how the labor market develops between now and then.”
Cowen’s analysis attracts attention because he is a name known for his efforts to predict price fluctuations in the cryptocurrency market. However, as with any analysis, predicting future price movements with precision is always a challenging task as market conditions can constantly change.
As Bitcoin and cryptocurrencies experience volatility across the board, investors and analysts will continue to follow market developments closely. While Cowen’s warning urges investors to be careful about potential risks, it also highlights the uncertainties about the future course of the cryptocurrency market.
You can follow the current price movement here.