Bitcoin: Analyst Shares “Worst-Case Scenario” for BTC
A popular crypto analyst sets a price target for Bitcoin (BTC) in case of a price collapse. He used historical trends to do this.
In a recent strategy session, crypto analyst Benjamin Cowen shared his insights with his 783,000 YouTube subscribers on the potential trajectory of Bitcoin in the case of a market collapse.
Worst-case scenario
Cowen speculates that Bitcoin could experience a 47% drop from its current value in the worst-case scenario.
However, he also believes that the king crypto could rally in the coming months, reaching $26,000 before back-testing a diagonal trendline, putting the cryptocurrency at $12,000 in August 2023.
He states that this prediction is based on the assumption that the November bottom was not the actual bottom and that there could be one more low in August 2023.
READ MORE: Bitcoin Making a Major Trend Shift, According to Analyst
50-week moving average
The analyst also looks at Bitcoin’s price in relation to the 50-week moving average, which has acted as a critical resistance indicator after a lengthy bear market during previous cycles. He provided three examples from 2012, 2015, and 2019, where the 50-week MA offered resistance, at least on the first attempt during a bear market.
Cowen believes that the 50-week moving average, currently just above $25,000, may play a similar role and provide resistance, at least on the first attempt.
While Cowen is cautious about a potential market collapse, he also believes that Bitcoin can rally in the coming months and reach a new high. He believes that the 50-week moving average may provide some resistance, but the cryptocurrency could ultimately break through it and continue its upward trajectory.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
