Bitcoin Warning Issued by Cryptocurrency Expert: Imminent Price Dive Likely if Historical Patterns Persist – Here Are His Predictions
Bitcoin analyst Benjamin Cowen indicates the cryptocurrency could experience a pullback after reaching new record highs due to a potential upcoming golden cross pattern. In a strategy session, Cowen shared his concerns with his 898,000 YouTube subscribers, stating that previous golden crosses occurring in 2015, 2019, 2020, and 2021 were followed by corrections of double-digit percentage points.
Cowen explained that a golden cross pattern forms when the 50-day moving average crosses above the 200-day moving average on the daily time frame. Historically, this pattern is typically considered a bullish sign, but Cowen noted that it has previously led to Bitcoin "dumps" in the past. At the time of writing, Bitcoin is trading at $110,911.
As Bitcoin rallies and investors grow increasingly optimistic, the analyst argues that a pullback may be needed to stabilize the market and prevent irrational expectations. Cowen added that prior golden crosses with Bitcoin have seen price action already perform incredibly well before the pattern forms, leading to euphoria among traders and overly ambitious price predictions.
While Bitcoin's current bull run has been underpinned by significant demand, adoptive investors, and positive macro-political developments, Cowen cautions that a correction would help to keep markets in check and provide an opportunity for investors to re-enter at more attractive levels.
In the context of Bitcoin's current rally, analyst Benjamin Cowen suggests a potential upcoming golden cross pattern might lead to a pullback, similar to corrections observed in 2015, 2019, 2020, and 2021, which were often double-digit percentage points. Furthermore, as the analyst delves into the implications of this pattern in the cryptocurrency market, he notes that a pullback may be necessary to prevent irrational expectations, opening possibilities for investors to re-enter at more favorable altcoin prices within the broader realm of cryptocurrency finance.
