Benjamin Cowen, a well known crypto professional, has warned merchants that bitcoin (BTC) is now displaying an alarming indication that would point out a crash just like the dot-com bubble.
Cowen has posted a video on his YouTube channel informing his 784,000 subscribers that bitcoin is experiencing a weekly loss of life cross for the primary time in its existence.
Why ought to merchants be careful
When a shorter-term transferring common crosses beneath a longer-term one, this is called a “loss of life cross,” and it’s often an indication that costs are about to go down. Bitcoin’s easy transferring common (SMA) is presently at $24,678, and the analyst notes that its 200-week SMA is presently at $24,999.
In response to Cowen, throughout a bear market, it’s fairly uncommon for BTC to be buying and selling beneath the 200-week easy transferring common. And even whether it is, it is going to solely be for a short while. [bitcoin] Cowen thinks it comes down to those wicks, roughly, more often than not. Cowen says that almost all trades have been beneath it since June, which is sensible since it is a bear market.
“Now bitcoin is again in direction of [the 200-week simple moving average], however we haven’t damaged by way of the extent of assist simply but.”
YouTuber and crypto analyst Benjamin Cowen
What’s the worst-case situation
Whereas nonetheless talking on what unhealthy might come, Cowen mentioned the worst-case situation for bitcoin could be for it to behave in the identical means that the Nasdaq did through the dot-com meltdown between the years 2000 and 2002.
Cowen predicts that the market will fall by 77%, bounce again by 60% to the 50-week easy transferring common, after which proceed falling slowly till it reaches all-time low. Even the Nasdaq, Cowen warns, skilled one thing of a neighborhood double prime, with an increase to the 50-week excessive adopted by a decline, a pause of virtually a month, an additional rise, after which a decline. For the reason that Nasdaq adopted this sample 3 times a row, Cowen has arrange a monitor and alert for it.