Bitcoin (BTC) enthusiasts and investors are keeping an eye on the ever-volatile cryptocurrency market as the clock ticks ever closer to the highly anticipated halving event in April 2024.
Benjamin Cowen, a well-known crypto analyst with a large following, has raised concerns about the possibility of a significant price drop in Bitcoin ahead of the upcoming halving.
In a recent interview with Scott Melker, Cowen delved into the historical patterns of Alpha Coin’s price movements leading up to the halving events.
He stressed that while he did not explicitly predict a 50% decline, historical data suggests such a decline is not out of the question. Looking at past cycles, Cowen noted that BTC typically experiences a sharp decline in value before a halving.
In his words: “What usually happens is Bitcoin halvings.” [in price] before the halving, and then people say, ‘Well, that’s what the halving meant.’”
Historical precedent: price behavior before the halving
To illustrate his point, Cowen pointed to previous market cycles, particularly the pre-pandemic decline and the one before it. Each time, the king coin’s value plummeted by around 50% before beginning its remarkable upward trend.
The commonality of these declines, particularly those that began in the summer, led Cowen to consider whether the current market might still be within the bounds of a 50% decline. If so, it could potentially drop to around $15,000.
Cowen’s concerns about an impending BTC price collapse are not unfounded. One of the key factors contributing to this fear is the dwindling liquidity in the cryptocurrency market and various risk asset markets.
As liquidity decreases, assets like Bitcoin may become more vulnerable to sharp declines. It’s a sign that has preceded significant market moves in the past, and Cowen believes it could be no different this time.
Bitcoin price amid social unrest
On the other side of the Bitcoin spectrum, vocal crypto advocate Max Keizer shared his thoughts on the future price direction of the cryptocurrency. Many Bitcoin enthusiasts have been wondering when Bitcoin will reach the fabled $220,000 mark.
However, Keizer warns that these levels are typically achieved “AFTER social unrest and societal collapse cause irreversible damage.”
People ask, “When” $220,000? #Bitcoin ?
Keep in mind, #Bitcoin Business at this level AFTER social unrest and the collapse of society causes irreversible chaos.
You need to prepare for higher prices AND an economic collapse.
— Max Keizer (@maxkeiser) October 17, 2023
He noted that the world is currently experiencing widespread social unrest in many major cities, caused by geopolitical unrest in several countries. Keizer’s warning sounds clear: people, especially Bitcoin holders, should be prepared for the possibility that higher prices are accompanied by an economic collapse.
BTCUSD has easily crossed the halfway mark and is in the $29,000 area. Chart: TradingView.com
The crypto market is as unpredictable as ever. Bitcoin is currently trading at $28,582 via CoinGecko, up 1.8% in the last 24 hours and up 5.7% over the past week.
As the community eagerly awaits the 2024 halving, analysts like Cowen and Bitcoin proponents like Keizer are providing key insights and warnings for both experienced investors and newcomers, underscoring the need for cautious optimism in the ever-evolving world of cryptocurrencies .
Featured image from Business Insider
Source : bitcoinist.com