Extensively adopted crypto analyst Benjamin Cowen is setting a worth goal for Bitcoin (BTC) if it have been to break down.
In a brand new technique session, Cowen tells his 783,000 YouTube subscribers that in a “worst-case situation,” Bitcoin might dive by over 47% from its present worth.
Cowen says Bitcoin might rally within the coming months after which “again check” a diagonal trendline, placing the king crypto at $12,000 in August 2023.
“If it have been August of 2023, like proper round right here [at $12,000], and it [currently] rallies on up [to $26,000] after which kind of sits up right here for some time, after which comes again down after which that finally ends up being the underside [at $12,000], it might additionally truly correspond to hitting this trendline once more, the low [in May 2022], the decrease low [in November 2022], after which possibly one final low once more [in August 2023], if November just isn’t the underside. That is after all assuming November just isn’t the underside, which admittedly, once more, it could possibly be. So the worst-case situation is one thing like that.”
Cowen subsequent seems to be at Bitcoin’s worth associated to the 50-week shifting common to investigate the potential for Bitcoin dipping beneath the November backside. The analyst says that the 50-week shifting common has served as a key resistance indicator after a prolonged bear market throughout earlier cycles, and it could be on the verge of doing so once more.
“We’ve received three examples after principally a protracted bear market. The primary one [in 2012], rejection, then the next low and blast off. The second [in 2015], rejection, double backside, then go. The third one [in 2019], we hesitated, received via it, in the end capitulated again down beneath it, after which put in a barely greater low…
Usually the 50-week presents some resistance at the very least on the primary try, even in 2019 once we received by it, we nonetheless hesitated at it for a couple of month earlier than making our approach via it. The place does the 50-week sit [now]? Simply above $25,000, which additionally corresponds this prior native excessive proper right here [in January 2022].”
Bitcoin is value $22,860 at time of writing.
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