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Analyst Benjamin Cowen Predicts 50% Bitcoin Dip Pre-Halving

Crypto Analyst Benjamin Cowen Foresees Potential 50% Bitcoin Dip Pre-2024 Halving.

56 Listen to this article Prominent cryptocurrency analyst Benjamin Cowen recently forecasted a potentially sharp downturn in Bitcoin’s price ahead […]

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Prominent cryptocurrency analyst Benjamin Cowen recently forecasted a potentially sharp downturn in Bitcoin’s price ahead of its next halving event, anticipated in April 2024. While not explicitly mentioning a 50% decline, such a decrease from Bitcoin’s recent peaks would imply a valuation around $15,000 per BTC.

Historical Trends Suggest Significant Pre-Halving Dip Drawing on historical price patterns, Cowen illustrated that significant reductions typically precede Bitcoin’s much-discussed halving events. Despite the general excitement surrounding Bitcoin halvings, historical data shows us that Bitcoin often sees a substantial price contraction, sometimes close to 50%, leading up to the event,” Cowen explained. He highlighted the previous cycle where Bitcoin experienced a 50% price plummet at the pandemic’s onset, ahead of the halving, noting a similar decline happened in the cycle before that, starting in summer.

Concern Over Shrinking Liquidity in Crypto Markets Cowen also brought attention to diminishing liquidity within cryptocurrency and broader risk asset markets as a potential catalyst for downward price movements. He raised concerns about the decreasing purchasing power of altcoins, speculating that this might negatively impact Bitcoin. Cowen pointed out the stagnation in total market capitalization since February and August 2022, questioning the inflow of new capital into the cryptocurrency sphere. The absence of new investments suggests a reshuffling of funds within the market rather than an expansion, indicating what seems to be a distribution phase,” he stated, emphasizing the underperformance of the ETH/Bitcoin pair.

Current Market Conditions As of the report, Bitcoin’s trading price hovers around $28,392, marking a 0.46% decline within the last 24 hours. On October 9, with a social media following of approximately 770K on the platform X (formerly known as Twitter), Cowen alerted his audience to the crypto market entering a particularly challenging phase, characterized by a rising Bitcoin dominance amidst growing investor wariness.

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A Tough Phase for Altcoins Cowen, who has been monitoring this market phase closely, observes that while Bitcoin might see a reduction in price, its dominance in the market appears to increase. This trend is due to even more pronounced losses among other digital currencies, or altcoins. This period represents the toughest segment of the market cycle,” Cowen remarked.

The insights shared by Cowen resonate with investors who follow the cyclical nature of cryptocurrency markets. They serve as a reminder of the volatility and speculative nature of the space, where significant price fluctuations can be influenced by both historical patterns and current market dynamics.

Read Also:  GBTC ETF Hindering Bitcoin's Path to $100,000
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