A closely followed crypto analyst is warning that Bitcoin (BTC) could suffer a massive correction as it trades in the lower $60,000 range.
In a new video update, crypto strategist Benjamin Cowen tells his 802,000 YouTube subscribers that Bitcoin could return to the $50,000 range on the weekly chart amid a possible “summer lull.”
Cowen believes Bitcoin may repeat a similar 2021 pattern when there was a sell-off in late April, a weeks-long rally starting in May, and then a downward trend in the summer months.
“You could certainly have a deeper pullback as well, back into the $50,000s. I do think that’s certainly possible.”
Cowen also says that Bitcoin’s pullbacks so far this cycle have been relatively small compared to prior cycles.
“We really haven’t had that many large pullbacks. A lot of these pullbacks have actually been relatively muted, especially compared to last cycle. These pullbacks are basically just like 20% pullbacks, essentially all of them. Even this one [in May 2024], it was still only about a 23% pullback. So last cycle, after that 2019 top, we ended up getting about a 50% pullback. Obviously, it went further down because of the pandemic later on…Even in the 2016 camp, there were still some larger pullbacks like 30% and 40%.
But I think in the same way that we’ve talked about diminishing returns, you’re also likely going to see diminishing volatility, as well as the cycles go on just because it takes exponentially more and more money to move the price.”
Bitcoin is trading for $61,537 at time of writing, up slightly in the last 24 hours.
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