Here’s a Potential Downward Price Target for Bitcoin if 2019-Style Correction Plays Out: Benjamin Cowen

In a recent video update, popular crypto analyst Benjamin Cowen explores the potential for Bitcoin’s price to drop if a correction similar to that of 2019 occurs.

Cowen, who has a subscriber base of 803,000 on YouTube, discusses the possibility of Bitcoin following a pattern reminiscent of its behavior five years ago, particularly if it corrects near its 20-week simple moving average (SMA).

According to Cowen, if Bitcoin experiences a rejection at the 20-week SMA and establishes a lower low compared to its current position, it could mirror the 2019 scenario.

“There are a lot of similarities in terms of how it ultimately played out [in 2019], where you get a high and then you get a lower high and then you capitulate below the bull market support band. And then you sort of rally back up in August, potentially set a lower low in September where it then comes back down to where we were in January…

So if we get a rejection off the 20-week SMA and then we do put in a lower low compared to where we are now, then you kind of have to be like ‘All right well the 2019 comparison was valid.’

Bitcoin’s 20-week SMA is currently positioned at $65,441.

Cowen speculates that if Bitcoin retraces its steps from 2019, it could potentially dip towards the 100-week moving average, which is around the $40,000 price level.

“If Bitcoin were to [start] setting these lows right now, if it were to put in a lower low later on in September, then that would likely correspond to the 100-week moving average which is exactly where it went back over [in 2019] after it got rejected off of the bull market support band, and that would correspond to roughly the yearly open at maybe around $40,000.”