Cryptocurrency Analyst Warns of Potential Bitcoin Death Cross
Cryptocurrency analyst Benjamin Cowen is sounding the alarm on a technical signal that could lead to a significant downturn for Bitcoin (BTC).
In a recent strategy session, Cowen, who has a following of 888,000 subscribers on YouTube, shared his concerns about the possibility of a death cross forming in the Bitcoin market within the next one to two weeks if current trends continue.
A death cross is a bearish signal that occurs when an asset’s 50-day moving average crosses below its 200-day moving average, indicating a potential drop in price.
Cowen believes that a sell-off may precede the formation of the death cross, stating, “There’s plenty of times where there’s a sell-off just before the death cross, just before it… If it happens again, it could be kind of a scary time.”
Based on Cowen’s analysis, a looming death cross could signal a Bitcoin correction similar to those seen in 2019 and 2021.
The analyst also shared his perspective on what could happen if his bearish prediction materializes, stating, “Usually there’s a low around the time of that death cross and depending on how low the price is at that time would sort of give us some insight into the fate of the next rally – whether it’s a rally to a new high or just a counter-trend rally to a lower high.”
If Bitcoin drops below $70,000, Cowen believes that the market structure may be broken, potentially preventing Bitcoin from reaching a new all-time high of around $109,000. He added, “…if it’s like $63,000, it’s going to be hard to ignore.”
However, if Bitcoin manages to establish a support level above $70,000, Cowen suggests that the market structure remains intact, stating, “If it holds above $73,000, then there’s no guarantee with the market, but it would suggest that the structure of the market remains intact.”
As of the time of writing, Bitcoin is trading at $85,052.
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