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Cryptocurrency analyst Benjamin Cowen has just lately warned of a possible sharp discount in ‘s (BTC) value earlier than its halving occasion in April 2024. On Wednesday, he drew consideration to historic patterns which have proven substantial pre-halving value drops, together with a 50% decline on the onset of the pandemic.
Cowen alerted his 770,000 followers on social media platform X (previously Twitter) that the crypto market is getting into a difficult section marked by rising Bitcoin market dominance. He referred to this as essentially the most brutal a part of the market cycle, indicating that traders are rising cautious.
The analyst expressed considerations over lowering liquidity within the cryptocurrency market and the diminishing shopping for energy of altcoins. He pointed to a static whole market capitalization, which mirrors ranges seen in February and August 2022. These indicators, in keeping with Cowen, are indicative of a “decrease excessive” and a possible 50% drop in Bitcoin’s value.
Moreover, Cowen famous the underperformance of the ETH/Bitcoin buying and selling pair, attributing this to a distribution section attributable to an absence of contemporary funding capital. At current, Bitcoin trades at roughly $28,392.
Along with Cowen’s observations, Max Keiser cautioned that societal unrest normally precedes excessive Bitcoin ranges. As of now, Bitcoin is buying and selling at $28,582 with slight positive factors. This aligns with Cowen’s warning of a doable important drop in Bitcoin’s worth to round $15,000 primarily based on historic patterns. These patterns embody sharp decreases seen in earlier market cycles earlier than a bull run, notably previous to the pandemic.
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