Bitcoin May Face Significant Price Drop Before April 2024 Halving, Warns Analyst By Investing.com
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Cryptocurrency analyst Benjamin Cowen has recently warned of a potential sharp reduction in ‘s (BTC) price before its halving event in April 2024. On Wednesday, he drew attention to historical patterns that have shown substantial pre-halving price drops, including a 50% decline at the onset of the pandemic.
Cowen alerted his 770,000 followers on social media platform X (formerly Twitter) that the crypto market is entering a challenging phase marked by increasing Bitcoin market dominance. He referred to this as the most brutal part of the market cycle, indicating that investors are growing cautious.
The analyst expressed concerns over decreasing liquidity in the cryptocurrency market and the diminishing buying power of altcoins. He pointed to a static total market capitalization, which mirrors levels seen in February and August 2022. These signs, according to Cowen, are indicative of a “lower high” and a potential 50% drop in Bitcoin’s price.
Furthermore, Cowen noted the underperformance of the ETH/Bitcoin trading pair, attributing this to a distribution phase due to a lack of fresh investment capital. At present, Bitcoin trades at approximately $28,392.
In addition to Cowen’s observations, Max Keiser cautioned that societal unrest usually precedes high Bitcoin levels. As of now, Bitcoin is trading at $28,582 with slight gains. This aligns with Cowen’s warning of a possible significant drop in Bitcoin’s value to around $15,000 based on historical patterns. These patterns include sharp decreases seen in previous market cycles before a bull run, notably prior to the pandemic.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters.
Cryptocurrency analyst Benjamin Cowen has recently warned of a potential sharp reduction in ‘s (BTC) price before its halving event in April 2024. On Wednesday, he drew attention to historical patterns that have shown substantial pre-halving price drops, including a 50% decline at the onset of the pandemic.
Cowen alerted his 770,000 followers on social media platform X (formerly Twitter) that the crypto market is entering a challenging phase marked by increasing Bitcoin market dominance. He referred to this as the most brutal part of the market cycle, indicating that investors are growing cautious.
The analyst expressed concerns over decreasing liquidity in the cryptocurrency market and the diminishing buying power of altcoins. He pointed to a static total market capitalization, which mirrors levels seen in February and August 2022. These signs, according to Cowen, are indicative of a “lower high” and a potential 50% drop in Bitcoin’s price.
Furthermore, Cowen noted the underperformance of the ETH/Bitcoin trading pair, attributing this to a distribution phase due to a lack of fresh investment capital. At present, Bitcoin trades at approximately $28,392.
In addition to Cowen’s observations, Max Keiser cautioned that societal unrest usually precedes high Bitcoin levels. As of now, Bitcoin is trading at $28,582 with slight gains. This aligns with Cowen’s warning of a possible significant drop in Bitcoin’s value to around $15,000 based on historical patterns. These patterns include sharp decreases seen in previous market cycles before a bull run, notably prior to the pandemic.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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