A broadly adopted analyst says {that a} gut-wrenching correction could also be within the playing cards for the crypto king Bitcoin (BTC).
In a brand new video replace, crypto strategist Benjamin Cowen tells his 792,000 YouTube subscribers that BTC has a historical past of retesting earlier macro resistance ranges as assist earlier than climbing larger.
In accordance with Cowen, Bitcoin didn’t retest $30,000 as assist throughout its climb above $60,000, leaving the doorways open for BTC to lose 50% of its worth.
“Even for the people who like to make use of the 2016 analog, keep in mind that after breaking out of those ranges, [Bitcoin] would then come again down and take a look at it as assist.
The issue now’s that this vary there at $30,000, to drop from [current levels] is a couple of 50% drop. A 50% drop is precisely what we obtained in 2019.”
Cowen additionally says that the present Bitcoin rally seems to be unsustainable as BTC is simply transferring larger with out creating any base for assist.
“I feel the difficulty is that Bitcoin is just not actually constructing out any actual assist. A whole lot of occasions when you’ve gotten these longer bull markets, after it breaks out, it likes to check it as assist.
As soon as it will get to the purpose the place it’s not testing it as assist anymore and it simply goes into these blow-off tops, that’s whenever you get these nasty bear market corrections.”
Bitcoin is buying and selling for $64,707 at time of writing, an almost 3% improve within the final 24 hours.
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