Analyst Benjamin Cowen Bitcoin While the price was trading around $40,000, it signaled that it could enter a correction phase similar to market cycles.
Benjamin Cowen pointed out that Bitcoin experienced a historically large market correction as it approached the halving.
As Koinfinans.com reported, halving represents an event in which mining rewards are halved. The next halving is expected to occur in April.
According to Cowen, the pre-halving correction usually results in Bitcoin testing the 100-week simple moving average (SMA). This means a bearish formation.
According to Cowen, there was a similar trend in November 2011 and 2016, before the halving year, and in 2020. The general trend is for the 100-week SMA to be tested in January and February.
You might say, ‘We only tested because of the pandemic,’ but this has happened every cycle. And we even fell below it. Forget testing. We went to the 100-week SMA and then continued to fall another 45% from the last cycle…
NEWS CONTINUES BELOWSo where does this leave us today? If you break 45% below the 100-week SMA at $28,176, that would put you back to the previous low at $15,355.
