There is a new Bitcoin alert around the corner. Check out the latest details that explain how BTC could suffer a price drop soon.
Bitcoin new price prediciton
Cryptocurrency expert Benjamin Cowen has issued a warning about a pattern that has been observed before the past three Bitcoin (BTC) halvings and has now resurfaced.
Cowen has stated that Bitcoin has historically fallen to the bull market support band during the first quarter of the halving year.
The bull market support band is an indicator that uses the 20-week simple moving average and the 21-week exponential moving average to identify potential support levels for Bitcoin’s price during the bull market.
As per Cowen’s analysis, if Bitcoin touches the bull market support band, it could depreciate by double-digit percentage points from its current level.
“In February of the halving year, Bitcoin has always tagged the bull market support band… from the current levels that would represent a substantial drop about a 15% drop.”
Cowen suggests that whether Bitcoin will be supported by the bull market band or if BTC falls below it will depend on the condition of the US economy.
“In the case of 2012 [Bitcoin halving], and in the case of 2016 [Bitcoin halving], we held it [bull market support band] as support. But in the case of 2020, we did not hold it as support. We had the pandemic drop, we ended up having a recession where the unemployment rate went up a lot…
If the economy holds up, then we might bounce off at that level [bull market support band].
If the economy does not hold up and the Federal Reserve has pushed us into a recession, then it might not hold up.”
Bitcoin is trading at $41,390 at the time of writing. Stay tuned for more details about the price of BTC and new predictions.
