Cryptocurrency analyst Benjamin Cowen is saying that Bitcoin (BTC) could be on the verge of a pullback after soaring to new all-time highs.
In a new strategy session, Cowen tells his 898,000 YouTube subscribers that Bitcoin is on the cusp of forming a golden cross pattern on the daily time frame.
A golden cross pattern occurs when a 50-day moving average crosses above the 200-day moving average. Cowen says that while the golden cross pattern is typically bullish, it has previously led to Bitcoin “dumps” in the past.
“My prior experiences with golden crosses influenced me to think that with a golden cross, you get a correction. We had a correction after the golden cross in 2019, we had one in 2020. We had also had one in 2021… …we also had one after a golden cross in 2015 and that was a much deeper correction.”
According to Cowen, Bitcoin could experience a correction of double-digit percentage points after the golden cross pattern forms.
“Looking at prior golden crosses… …just noticing that a lot of times you get a golden cross, you get about a 10 to 15% drop.”
The widely followed crypto analyst further says,
“So my prior experiences with golden crosses with Bitcoin in 2023 had always told me that you rally up by the time you get to the point where you get a golden cross price action has already done very very well, people tend to get euphoric, they start calling for crazier and crazier price predictions in the short term. And then what ends up happening is then Bitcoin gets a pullback. And it keeps those people in check. And it’s just sort of a way of the market… calming down for a little while.”
Bitcoin is trading at $110,911 at time of writing.
Generated Image: Midjourney
