Common crypto strategist Benjamin Cowen is questioning the sustainability of the present Bitcoin (BTC) rally based mostly on historic priority.
Cowen tells his 782,000 YouTube subscribers that Bitcoin might replicate its early 2020 trajectory the place the flagship crypto asset initially rallied earlier than plunging considerably.
Bitcoin reached a excessive of $10,500 earlier than plunging to a low of round $3,800 between February and March 2020.
In line with Cowen, Bitcoin’s habits in early 2020 is related to the present interval since it’s the solely different time in its historical past that the flagship crypto asset has skilled a recession or recession-like situations.
“Should you assume again to what occurred in 2020, this right here [first quarter of 2020] was a really transient recession. I nonetheless bear in mind on this vary again over right here, there have been really lots of people that had been fairly bullish going into early 2020. And if you happen to return and take a look at what individuals had been saying again then, quite a lot of indicators had been flashing that this was the beginning of the brand new bull market…
One factor to bear in mind is that this right here [Bitcoin falling from $10,500 to $3,800 in early 2020] occurred throughout the one recession that now we have had for Bitcoin. It was very, very transient.”
In line with Cowen, the worth of Bitcoin might vary between $16,000 and $30,000 for a “whereas” earlier than a transparent course will be decided.
“You can at all times see one thing related the place Bitcoin spends some time on this vary [~$16,000 – $30,000] after which it will definitely comes down right into a recession. It might sweep the lows, it might put in the next low, it might put in a decrease low.”
Bitcoin is buying and selling for $23,069 at time of writing.
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