The widely followed crypto analyst Benjamin Cowen maps out how low the price of Bitcoin (BTC) could fall if a correction such as in 2019 occurs.
In a new video update, Cowen tells his 803,000 YouTube subscribers what could happen if the crypto king’s graph played out the way it did about five years ago.
According to Cowen, if the leading cryptocurrency by market cap corrects near the 20-week simple moving average (SMA), BTC could follow the pattern it did in 2019.
“There are a lot of similarities in the way it turned out in the end [in 2019]where you get a high and then get a lower high and then capitulate below the bull market support band. And then you rebound again in August, and possibly set a lower low in September, and then it goes back to where we were in January…
So if we get a rejection for the 20-week SMA and then we set a lower low compared to where we are now, you have to be like, “Okay, the 2019 comparison was valid.”
Bitcoin’s 20-week SMA is currently hovering at $65,441.
Cowen goes on to say that if the crypto king were to follow in his former footsteps, he would likely land near the 100-week moving average – or somewhere near the $40,000 price level.
“If Bitcoin would do that [start] If we set these lows right now and hit a lower low later in September, that would likely match the 100-week moving average, which is exactly what it crossed back over [in 2019] after being rejected outside the bull market support band, and that would roughly correspond to the annual opening of perhaps around $40,000.”
BTC is trading at $62,933 at the time of writing, up 5.13% over the past 24 hours.
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