Cryptocurrency analyst Benjamin Cowen is pointing out a technical indicator that may lead to a significant decline in Bitcoin (BTC).
During a recent strategy session, Cowen informed his 888,000 YouTube subscribers that if current conditions persist, Bitcoin might experience a death cross “in approximately one to two weeks.”
A death cross is a bearish indicator that occurs when an asset’s 50-day moving average drops below its 200-day moving average.
Cowen suggests that a sell-off could happen before the death cross takes place.
“There have been many instances where a sell-off occurs just prior to the death cross… If it happens again, it could be quite a concerning time.”
Based on the trader’s analysis, it appears that an impending death cross could signal a Bitcoin correction, similar to what was observed in 2019 and 2021.
The popular analyst also shares his perspective should his bearish forecast materialize.
“Typically, there’s a low around the time of that death cross, and how deep that low is would help us understand the potential for the next rally—whether it leads to a new high or just a counter-trend rally to a lesser high.”
Cowen notes that if Bitcoin drops below $70,000, it might indicate a break in the market structure, making it unlikely to surpass the current all-time high of around $109,000.
“…[BTC could] resolve to a lower high if Bitcoin enters the $60,000s, especially the low $60,000s… If it lands around $63,000, it will be difficult to overlook.”
Conversely, if Bitcoin establishes a local bottom above $70,000, Cowen remarks,
“If it maintains above $73,000, while the market is still uncertain, it would imply that the market structure remains intact.”
As of now, Bitcoin is trading at $85,052.
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Disclaimer: The views expressed at The Daily Hodl do not constitute investment advice. Investors should thoroughly research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that all transfers and trades are under your own risk, and any losses you may incur are your own responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it act as an investment advisor. The Daily Hodl also participates in affiliate marketing.
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