Benjamin Cowen, one of the well-known analysts of the cryptocurrency market, Bitcoin $98,131.4He warned that (BTC) could experience a sudden and serious correction. In his last strategy session on his YouTube channel, Cowen stated that the extension of Bitcoin’s 20-week simple moving average (SMA) gives bearish signals. “The extension of the 20-week moving average shows that Bitcoin is in a range where corrections can come down to earth,” said Cowen, emphasizing that the market should be watched carefully.
Bitcoin’s Support Levels May Be Tested Again
Cowen noted that Bitcoin could return to the bull market support band formed by the 20-week SMA and the 21-week exponential moving average (EMA) with a potential correction. The analyst noted that this band is currently between $72,000 and $80,000.
“There is a possibility that Bitcoin will completely fall back to the bull market support band. However, it was able to recover and exceed this band last time,” said Cowen, adding that past movements gave clues about the future.
Additionally, the analyst also noted that Bitcoin could retest a trend line located at $60,000 as it carries out this correction. “We should not ignore the possibility of a retest of this trend line,” he said. Cowen noted that similar patterns have been seen in previous cycles of Bitcoin.
Investors Need to Be Careful
The current price of Bitcoin stands at $98,610, an increase of 5.8% in the last 24 hours. However, the signals given by technical indicators show that caution is required in the market.
As Cowen warned, the possibility of Bitcoin correcting raises certain risks in the market. Investors should note that such corrections could increase market volatility. Market analyzes and technical indicators offer various scenarios for future price movements.
Investors are advised to review their risk management strategies and be prepared for potential corrections.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
