CoinDesk reports:
A closely watched cryptocurrency analyst has warned that Bitcoin (BTC) trading below $60,000 could see a significant pullback.
In a new video update, cryptocurrency strategist Benjamin Cowen told his 802,000 YouTube followers that Bitcoin may return to the $50,000 range on the weekly chart during a potential “summer lull.”
Cowen believes Bitcoin could repeat a pattern similar to 2021, when there was a sell-off in late April, followed by several weeks of rebound in May, and then a downward trend in the summer.
“You’re definitely going to get deeper pullbacks, back to $50,000. I certainly think that’s possible,” Cowen said.
Cowen also noted that the pullback in the current cycle so far has been relatively small compared to previous cycles.
“We really haven’t had as many large pullbacks. In fact, a lot of the pullbacks have been relatively mild, especially compared to the previous cycle. These pullbacks are basically like 20% pullbacks, basically. Even this time (in May 2024), it’s only about a 23% pullback. So the last cycle, after the high point in 2019, we ultimately got about a 50% pullback. Obviously, it went further down because of the pandemic… Even in the 2016 camp, there were still some larger pullbacks, like 30% and 40%.”
“But I think, just like we talk about diminishing returns, you may also see diminishing volatility, as well as the length of the cycles, because the volatility of the price requires more and more capital.”
Source: Benjamin Cowen/YouTube
At the time of writing, Bitcoin was trading at $61,537, with a slight increase in the past 24 hours.
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