Prominent Bitcoin analyst Benjamin Cowen has issued a critical warning regarding the recent downward movements of (BTC). According to Cowen, if the single-digit corrections that Bitcoin has experienced in recent weeks continue, the cryptocurrency could see a drop of more than 30%. He claims that a decline is inevitable if the upper trendline of descending highs observed on the weekly timeframe since March is not broken. Cowen predicts that if the decline continues, Bitcoin could fall to $42,000 by the end of the year.
What do the upper and lower trend lines reveal about Bitcoin?
Benjamin Cowen stated in a statement to his 814,000 YouTube subscribers that Bitcoin is struggling to break the upper trendline on the weekly chart. He stated that if this line fails to break again, there could be a strong pullback towards the lower trendline.
Cowen says this line could push Bitcoin to $42,000 by December. Additionally, this level coincides with the 100-week moving average and has stood out as a key support point in previous cycles.
According to Cowen, this scenario is very similar to Bitcoin's price action in the last quarter of 2019 and the first quarter of 2016. Stating that Bitcoin could repeat historical cycles, the analyst emphasized that the 100-week moving average should be watched if the bulls weaken. This level is believed to be an important support zone for Bitcoin.
Bitcoin's key level is $42,000
According to Cowen’s analysis, there is a possibility that Bitcoin will drop to $42,000 by December. The analyst suggests that the 100-week moving average will be at exactly these levels during this period and Bitcoin could test this support level. Bitcoin is currently trading at $61,760 and this bearish scenario is a development that investors should watch carefully.
It is claimed that if BTC exhibits similar price volatility as in previous cycles, the 100-week moving average will be particularly important. The analyst’s warning points out that although Bitcoin is in a bull market, it could fall sharply if it fails to surpass certain technical levels.
