Widely followed crypto analyst Benjamin Cowen is mapping out how low Bitcoin’s (BTC) price could dip if a 2019-style correction unfolds.
In a new video update, Cowen tells his 803,000 YouTube subscribers what could happen if the crypto king’s chart plays out like it did about five years ago.
According to Cowen, if the top crypto asset by market cap corrects at the area near its 20-week simple moving average (SMA), BTC could follow the pattern it did in 2019.
“There are a lot of similarities in terms of how it ultimately played out [in 2019], where you get a high and then you get a lower high and then you capitulate below the bull market support band. And then you sort of rally back up in August, potentially set a lower low in September where it then comes back down to where we were in January…
So if we get a rejection off the 20-week SMA and then we do put in a lower low compared to where we are now, then then you kind of have to be like ‘All right well 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 its former footsteps, it would likely land near the 100-week moving average – or somewhere near the $40,000 price level.
“If Bitcoin were to [start] setting these lows right now, if it were to put in a lower low later on in September, then that would likely correspond to the 100-week moving average which is exactly where it went back over [in 2019] after it got rejected off of the bull market support band, and that would correspond to roughly the yearly open at maybe around $40,000.”
BTC is trading for $62,933 at time of writing, a 5.13% increase during the last 24 hours.
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The post Here’s a Potential Downward Price Target for Bitcoin if 2019-Style Correction Plays Out: Benjamin Cowen appeared first on The Daily Hodl.
