In a recent video update, prominent crypto analyst Benjamin Cowen raised concerns that Bitcoin (BTC) may have already reached its peak for 2023. Cowen, with a substantial following on YouTube, points to similarities between Bitcoin’s current price action and its decline in the second half of 2019.
Cowen Says March Rally Implies No Near-Term Upside
According to Cowen, there is a high probability that Bitcoin’s local highs for this year have already occurred, or at most, the yearly high would be only slightly higher. This warning has sparked discussions among investors and analysts who closely monitor the cryptocurrency market.
He further added Bitcoin experienced a brief high in April when its price crossed the $30,000 mark. However, since then, it has faced a decline of approximately 16%, with the current trading price standing at $25,740. This downward trend has led many to question whether Bitcoin’s bullish run has come to an end.
He also clarifies that any potential near-term upward movement for Bitcoin seems unlikely. He points out that the March rally was triggered by the collapse of US regional banks, which prompted the Federal Reserve to inject liquidity into the market. Analyst indicates that unless a similar event occurs to boost Bitcoin’s strength, the cryptocurrency could follow a similar trajectory to 2019.
US Recession on the Horizon, Impact on Bitcoin
Moreover, he has a strong belief that the impending US recession could further trigger Bitcoin’s downward trend, nullifying its early gains in 2023. He reminds viewers of the rally that preceded the recession in 2019 and early 2020, followed by a significant capitulation.
On which he concludes “You can see markets rally into recession. We’ve talked a lot about how a recession has not yet occurred over the last 18 months.”
At the time of writing, Bitcoin is trading at $25,822, representing a 5% decline over the past 24 hours.
While the sentiment surrounding Cowen’s shocking announcement remains divided, it is undeniable that the crypto market is at a crossroads. Analysts and investors are closely watching the cryptocurrency’s future price movements and considering the potential consequences of a looming recession.
