Renowned cryptoanalyst Benjamin Cowen has issued a critical warning to Bitcoin
82,087 investors about a significant technical formation. Cowen believes that if current market conditions do not change, a “death cross” could occur in the coming days. This technical indicator has historically led to severe price corrections in Bitcoin. He stressed the need for investors to closely monitor chart data.
Technical Indicators Signal Red Alert for Bitcoin
Cowen noted the impending formation of a death cross, which occurs when Bitcoin’s 50-day moving average drops below the 200-day moving average. This formation is typically regarded as a bearish signal in technical analysis. He recalled similar scenarios in 2019 and 2021, which were followed by significant price corrections.
Bitcoin Death Cross
According to the analyst, a wave of selling often precedes such a technical formation. These types of sell-offs can cause panic among investors, leading to further price declines. Cowen’s insights serve as a critical alert, particularly for short-term traders. They emphasize the importance of making data-driven decisions rather than emotional ones in trading.
Beware of Market Structure Disruption in Bitcoin
Cowen expressed concerns that if Bitcoin falls below the $70,000 mark, it could disrupt the overall market structure. He indicated that maintaining a position below this level could undermine investor confidence and create uncertainty in market direction. Should Bitcoin’s price decline to around $63,000, he warned that the upward trend might significantly weaken.
Conversely, the analyst predicts that Bitcoin can preserve its current market structure if it stays above the $73,000 level. Cowen believes this threshold plays a critical role in the short-term outlook. However, he posits that the existing price of $85,000 will be decisive for the continuity of this structure.
