Crypto analyst Benjamin Cowen explained in a recent online statement that the price of bitcoin could wind up taking an even harder fall next month. Benjamin Cowen Predicts Rough Things for BTC Bitcoin has been experiencing somewhat bearish trends as of late. While the currency has shot up by a few thousand dollars since the beginning of February, the asset is nowhere near the all-time high it achieved last November. During that month, the world’s number one digital currency by market cap was trading for a whopping ,000. Everyone thought the currency was on top of the world, and for a little while it was, but once you climb to the top of Mt. Everest, there’s nowhere to go but down. Bitcoin is now experiencing its downward trek, and its trading in the low ,000
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Crypto analyst Benjamin Cowen explained in a recent online statement that the price of bitcoin could wind up taking an even harder fall next month.
Benjamin Cowen Predicts Rough Things for BTC
Bitcoin has been experiencing somewhat bearish trends as of late. While the currency has shot up by a few thousand dollars since the beginning of February, the asset is nowhere near the all-time high it achieved last November. During that month, the world’s number one digital currency by market cap was trading for a whopping $68,000. Everyone thought the currency was on top of the world, and for a little while it was, but once you climb to the top of Mt. Everest, there’s nowhere to go but down.
Bitcoin is now experiencing its downward trek, and its trading in the low $40,000 range – nearly $30K less than where it was three months ago. It’s an ugly sight to see, and according to Cowen, things might get worse in the coming weeks.
In his video, Cowen says:
Worst case obviously would be bearish, meaning we could be at lower prices, and we already did go to lower prices. We went down to $33,000 earlier this quarter. My general outlook for Q1 is bearish for bitcoin or neutral at best. The best-case scenario that I can imagine would be bitcoin closing Q1 at around $46,000.
This goes against what a lot of other analysts seem to believe. For some, like analysts at Fundstrat, 2022 is going to be the most bullish year for bitcoin yet, with several individuals claiming that bitcoin is going to experience six-figure prices of anywhere between $100K and $200K. However, Cowen is convinced that this is not going to be the scenario for bitcoin. He mentioned:
I see quantitative tightening [and] a lot of economic uncertainty. We see the dollar still above its own bull market support band. We see bitcoin below its bull market support band. I cannot look at those conditions and say that this is the best scenario for altcoins… Altcoins do the best when bitcoin is going sideways above its bull market support band.
In his analysis of the situation surrounding crypto, Cowen pointed his listeners to the summer of 2021 when upon bitcoin’s dip to under $30K, many altcoins also experienced heavy falls that affected their overall valuations. He says that typically, whatever bitcoin does, altcoins will follow suit, and thus if the main form of crypto suffers in March, so will its digital cousins. He said:
Remember altcoins did not have a crazy rally until after that came.
The Currency Is Correlating with Standard Assets
In addition, he believes the Fed is likely to raise interest rates again in March, which could wind up affecting bitcoin’s price run. He says:
Bitcoin became increasingly correlated with equities toward the end of the fourth quarter of last year and fell when faced with the prospect of central bank tightening.