Crypto Analyst Signals Echoes of 2019: Bitcoin Correction Alert
A prominent crypto analyst raised concerns about Bitcoin (BTC) potentially undergoing a correction akin to the one witnessed in 2019.
In a recent update on strategy, Benjamin Cowen, a notable figure in the crypto space, highlighted a pattern in Bitcoin’s price movement reminiscent of the period preceding the 2019 correction.
Cowen pointed out the possibility of a similar trend emerging if Bitcoin experiences a substantial price surge, nullifying the prior week’s losses, followed by subsequent movements in the final week of December. He referenced the analogous movement observed before the first Federal Reserve rate cut in mid-2019, prompting contemplation on whether history might repeat itself.
Referencing his chart, Cowen showcased how, in 2019, Bitcoin’s value plummeted from approximately $13,000 to $9,167 after exhibiting the described pattern. The chart also illustrates Bitcoin’s decline to below $4,000, coinciding with the period of bottomed-out interest rates in 2019.
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Additionally, Cowen suggested a probable scenario where Bitcoin could hit a local peak before declining approximately a month ahead of a Federal Reserve rate cut, mirroring the events of 2019. He mentioned differing speculations within the market, with some anticipating a Fed rate cut as early as January, while others place their bets on a cut in March.
Elaborating further, Cowen emphasized the historical alignment between Bitcoin’s local peak and the initiation of Fed rate cuts, highlighting the trend preceding the July 2019 rate cut. However, he emphasized the uncertainty surrounding the timing of the first rate cut, indicating varying opinions within the market influenced by the evolving labor market conditions.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
