In recent evaluations, analyst Benjamin Cowen emphasized the possibility of a pullback for Bitcoin
$
0.000039following its climb to new peaks. He referenced current technical indicators and past price movements, suggesting a potential short-term value decline.
BTC Golden Cross and Historical Examples
Cowen highlighted that Bitcoin is approaching a technical formation known as the “golden cross” on the daily chart, where the 50-day moving average crosses above the 200-day moving average. Although this indicator is often seen as a positive market sign, Bitcoin has historically experienced brief price drops after such formations. Cowen underscored that various corrections occurred following golden crosses in previous years. In this context, Cowen reminded that Bitcoin experienced significant value losses during golden cross periods in 2015, 2019, 2020, and 2021. He noted that the decline in 2015 was a deeper correction and similar movements have been observed in recent years after this formation.
Benjamin Cowen: “When a golden cross forms, we generally see a correction. There was a pullback following the golden cross in 2019, 2020, and 2021. The correction was quite deep in 2015.”
Potential Short-term Scenarios for BTC
The analyst contended that a correction between 10% and 15% could occur following this formation. Consequently, a new golden cross might lead investors to encounter double-digit short-term declines.
Benjamin Cowen: “By examining previous golden crosses, we generally observed a decline of around 10-15%.” According to Cowen, during this period, investor expectations rise along with surges, and much higher price predictions are discussed in the short term. However, the occurring pullbacks bring balance to the market and limit overly optimistic predictions. The post-golden cross correction might temporarily calm market excitement.
Benjamin Cowen: “After the golden cross, prices generally rose, and investors started expecting higher levels. However, a pullback followed, balancing the market.” Now, we have both good news and bad news. After Cowen’s recent prediction, BTC fell from its peak following the latest Trump statements. The bad news is the drop was not double-digit, indicating a potentially deeper correction. If history repeats itself, BTC could retreat to the 101k dollar range. Technical analysis indicators and historical price movements can aid investors in determining their future strategies. However, it’s important to remember that no technical indicator provides definitive results. Investors should consider diversifying their portfolios and keeping up with market news in anticipation of potential fluctuations.
