Benjamin Cowen, a outstanding cryptocurrency analyst, has established a value objective for bitcoin (BTC) if its worth was to plummet.
A brand new technique session that Cowen uploaded on YouTube knowledgeable his 783,000 followers that in a worst-case situation, the worth of bitcoin could fall by greater than 47% relative to its current stage.
Cowen: The brief bull run might finish
Based on Cowen, bitcoin could get well within the following months, after which it could backtest a diagonal trendline, putting the main cryptocurrency’s value at $12,000 in August 2023.
Cowen goes on to say that if November was not the underside, BTC may doubtless correlate to the 2022 trendline once more to achieve the subsequent low in August 2023, having presumably damaged a $26,000 resistance within the prior months to August, establishing the underside at $12,000 as of August 2023.
“Naturally, this supposes November isn’t the underside, however it’s doable once more. So, that’s the worst-case state of affairs.”
Benjamin Cowen, bitcoin analyist.
Cowen: What does the 50-week MA say?
Whereas wanting on the charts, Cowen then examines the worth of bitcoin concerning the 50-week shifting common to evaluate the chance that it’ll go beneath the present November 2022 low.
The 50-week shifting common, in keeping with the knowledgeable, has beforehand functioned as a vital resistance indication throughout a protracted bear market and will quickly be about to take action once more.
Based on Cowen, the 50-week typically presents some resistance, a minimum of on the primary attempt. In 2019, nevertheless, the markets might go it, although there was some hesitancy there for a few month earlier than they did.
He says the 50-week is now barely over $25,000, which matches the earlier native excessive in January 2022. Cowen believes one other break over the now resistance stage might nonetheless occur earlier than the plunge is seen. This isn’t the primary evaluation that exhibits a chance of a bear market, as many worry its return may very well be seen in 2023.