Analyst Benjamin Cowen is leaning bearish on Bitcoin (BTC) amid a single-digit correction by the flagship crypto asset over the past week.
Cowen tells his 814,000 YouTube subscribers in a new video that if Bitcoin fails to overcome the upper trend line formed by the series of lower highs on the weekly time frame since March, it is likely to plunge by around 32% from the current level to the lower trend line formed by a series of lower lows generated over the same period on the same time frame.
“If Bitcoin is rejected up here [upper trendline] again and it comes down again then you have to look at this trend line down here [lower trendline] again and if you look at the bottom part of this trend line let’s say by December….it would put the price of Bitcoin right around $42,000.”
Source: Benjamin Cowen/YouTube
Cowen further says,
“The reason why $42,000 is an interesting number is because if you go back and look at the 100-week moving average, you can kind of see that by the November-December time frame, that’s basically where the 100-week moving average is going to be.”
Source: Benjamin Cowen/YouTube
Bitcoin is trading at $61,760 at time of writing.
According to Cowen, Bitcoin will mirror price action from previous cycles if it fails to break above the upper trend line.
“If Bitcoin cannot break the lower high structure… if it can’t break through the lower high structure and the bulls just get tired once again then I think your eyes have to be drawn to the 100-week moving average which is where Bitcoin fell in Q4 of 2019 and Q1 of 2016.”
Source: Benjamin Cowen/YouTube
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