A widely followed crypto analyst warns that Bitcoin (BTC) could suddenly undergo a massive correction.
In a new strategy session, Benjamin Cowen tells his 850,000 YouTube subscribers that the extension of the 20-week simple moving average (SMA) indicates a bearish trend for Bitcoin.
“If you look at the short-term bubble risk, which is even just the extension of the 20-week moving average, you can see that it’s in this area where some of these corrections are found where Bitcoin gets back to the bottom the facts return.” .”
The analyst says a correction could send Bitcoin back to the bull market’s support zone, which consists of the 20-week SMA and 21-week exponential moving average (EMA). The band currently covers the range between $72,000 and $80,000.
“There is a possibility that Bitcoin could fall back to the bull market support band. But remember, last time it was simply consolidating and waiting for the 20-week SMA to catch up. So that’s also a result.”
Cowen also points out that a Bitcoin correction could be more severe than many expect, potentially leading to a retest of a…
