Bitcoin Analyst Warns of Potential Downside: Double Bottom or New Low?
Bitcoin (BTC) has experienced a significant rally from 2022 lows, but analyst Benjamin Cowen believes it could still crash by double-digit percentages from current levels.
Cowen says that the asset could either retest the November low of around $15,500, a correction of over 40%, or drop even further. He also thinks there’s a possibility of the maximum downside being only a few thousand dollars below the current low.
Cowen’s analysis
In a recent interview on The David Lin Report, Cowen explained that there is a serious case to be made for a potential double bottom, similar to what happened back in 2015.
He believes we could see something like that or potentially a slightly lower low. Cowen added that a theoretical recession could cause a new drop in price to materialize. Still, even then the max downside would likely only be a few thousand dollars below the current low.
Balaji Srinivasan’s $1 million bet
Cowen also commented on the former Coinbase chief technology officer Balaji Srinivasan’s $1 million bet that Bitcoin will hit seven figures in 90 days. The analyst believes that the conditions necessary to trigger such a price explosion are unlikely to materialize this year.
He thinks that for Bitcoin to rally up to new all-time highs, there would have to be elements of hyperinflation, which could make people lose trust in the US dollar. However, Cowen thinks this is not a likely scenario for this year. Instead, he predicts that rapid disinflation courtesy of a recession in the back half of the year is more likely to occur.
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Potential implications
Cowen’s analysis is another reminder of the potential volatility and unpredictability of the cryptocurrency market. It highlights the need for investors to conduct thorough research and analysis before making investment decisions.
Additionally, his analysis could have implications for those who have already invested in Bitcoin, as a significant crash could result in substantial losses. Investors must monitor the situation carefully to determine their best course of action.
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.
