There are all kinds of predicitons regarding the price of Bitcoin these days, and some of them involve a price crash soon. While novice investors get scared by the news, we know that this would be a perfect time for accumulation just ahead of the halving, which is scheduled for 2024.
Bitcoin new price prediciton is out
At the moment of writing this article, BTC is trading in the red, and the king coin is priced at $28,503.
It has been just revealed by the online publication the Daily Hodl the fact that the crypto analyst Benjamin Cowen is warning that Bitcoin (BTC) could see a massive price drop before next year’s halving event in April 2024.
In a recent interview with Scott Melker, Cowen mentioned that Bitcoin has historically experienced a 50% decline before a halving event takes place.
Although Cowen refrains from making a specific prediction, a 50% drop from Bitcoin’s last peak would bring it close to $15,000.
Cowen explains that in previous cycles, the Bitcoin halving has been a topic of discussion, and the price of Bitcoin has dropped before the event. Cowen notes that even before the pandemic, Bitcoin experienced a 50% drop, which began in the summer.
This trend was observed in the cycle before that as well, where the price dropped 50% before the actual bull market began.
Cowen suggests that some people believe that Bitcoin is not dropping currently, but he questions how they know that it is not just a lower high and still part of the 50% drop, which could be a possibility.
Cowen made sure to explain the fact that one of the reasons why he believes Bitcoin could make a major move to the downside is the drying up of liquidity in crypto and most risk asset markets.
“And that’s my concern for Bitcoin, is that liquidity is leaving the altcoin market. The purchasing power of these altcoins are going down and at some point, I think that affects Bitcoin. Look at the total market cap. If there were a lot of new money coming into the space, why is the total market cap the same as it was back in February and the same as it was back in August 2022?”
He also continued and stated the following:
“There’s not really a lot of new money coming into the space it’s basically just money shuffling around from the altcoin market to Bitcoin and one of the main drivers of it is Ethereum. Look at look at what’s going on with the ETH/Bitcoin pair. It’s collapsing right now. I said before, this just simply looks like a distribution phase.”
It is important to keep in mind the fact that a drop in the price of BTC would be another great opportunity to buy more coins ahead of the important halving that we’re all waiting for in 2024.
