History Suggests Massive Bitcoin Correction Underway, According to Analyst Benjamin Cowen
Analyst Benjamin Cowen believes Bitcoin (BTC) is about to enter a correction phase similar to prior market cycles as the crypto king dips teeters at $40,000.
In a new strategy session, Cowen tells his 789,000 YouTube subscribers that Bitcoin has historically experienced a massive market correction as it approaches the halving.
Every four years, Bitcoin undergoes a halving event, when miners’ rewards are cut in half. The next halving is expected in April.
According to Cowen, the pre-halving correction typically sees Bitcoin dropping to test the 100-week simple moving average (SMA).
“We’ve also tested the 100-week SMA around this timeframe, either the late part of that pre-halving year or the early phase of the halving year. We tested it right here [around November 2011] in that cycle, just before the halving year arrived. Two cycles ago [in 2016], we tested the 100-week SMA in January, February of the halving year.
And then last cycle [in March 2020] we tested it.
You can say, ‘Well, we only tested it because of the pandemic,’ but it’s happened to every cycle. And we even fell below it. Forget testing it. We went to the 100-week SMA and then we proceeded to fall another 45% from there last cycle…
Guess where that would put you today? A 45% drop below the 100-week SMA [at $28,176], that would put you back at the prior low [at $15,355].”
Bitcoin is trading for $40,004, down about 3% in the last 24 hours.
I
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post History Suggests Massive Bitcoin Correction Underway, According to Analyst Benjamin Cowen appeared first on The Daily Hodl.
Go to Source
Author: Daily Hodl Staff
