Popular cryptocurrency analyst Benjamin Cowen has summed up the worst possible scenario for Bitcoin as Bitcoin (BTC) struggles to reclaim the $60,000 level.
In a recent video, Cowen took a look at what he calls the “bull market support band,” which is a combination of the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA). According to the analyst, once the BTC bull market successfully retests the support band, it will historically never go below this price again. Since BTC found support when it bounced off $40,000 in October, Cowen says we will never see Bitcoin drop below this level again.
Macro Uptrend Highlight
Cowen also states that Bitcoin’s last major correction was a 25% drop. According to him, if Bitcoin repeats the same 25% correction, it will bottom out at $51,500, which is in the bull market support band.