Benjamin Cowen, bitcoin He thinks the recent decline in the price of .com reflects a historical pre-halving behavior. According to Cowen, the price often moves “half up, half down” in the pre-halving years of Bitcoin. During such periods, the market destroys both bulls and bears as alternatives.
Cowen explained that in past halving cycles, price crashes were part of patterns that turned into a sustained price surge. As part of this price development, the recent drop is putting Bitcoin in the support area of around $25,000.
According to Cowen, analysts during the pre-halving surge altcoin paying attention to the market. They are trying to understand whether the main reason behind Bitcoin’s price increase is the transfer of assets from the altcoin market to blue chips or whether it is fundamental market indicators.
Using historical data from 2019 to 2020, Cowen cited cases supporting both a shift from altcoins to blue chips and a rally supported by fundamental factors. He compared Bitcoin’s market situation to the total altcoin market caps.
Cowen explained his views using the degree of variation or convergence between both entities. The congruence between both variables reflected the main influence behind the price trend. On the other hand, when they were not aligned, it meant that funds flowed from the altcoin market to Bitcoin.
The recent Bitcoin price trajectory places it below the bullish pivot. According to Cowen, this is not yet a confirmation that the price will drop further. However, he sees this as a warning sign in sync with an earlier signal from the total altcoin market cap a month ago.
Bitcoin traded at $25,720 at the time of writing, staying just below the key support of $25,800.