Renowned crypto analyst, Benjamin Cowen, has issued a cautionary note to his 820,000 YouTube subscribers as Bitcoin, the leading cryptocurrency, dances around its all-time high. Cowen, in a recent video, speculated that Bitcoin might enter a bearish phase roughly a month after the US general elections.
Cowen shared, “I just want to put that out there as one potential outcome that following the election, there’s going to be a lot of really bold calls as to what will happen. And what I think could happen is a drop sometime in early December that scares people. And I think it might be around the time of the labor market release [Non-Farm Payroll report is scheduled for December 6th].”
The seasoned analyst conjectures that Bitcoin could experience a plunge anywhere from 12% to 46% from its current position in the event of a bearish turn.
Cowen remarked, “What is unclear to me right now is whether that drop by Bitcoin is just back-testing this [around $65,000] and then going up in 2025 or if it’s back-testing down here [around $40,000] and then going up. That is what I still remain somewhat unsure of…”
As it stands, Bitcoin is trading at $73,813, a slight 2% dip from its record-setting high of approximately $75,400.
Despite his cautionary words, Cowen anticipates that any potential Bitcoin correction in December would likely be short-lived.
He explained, “I could envision a scenario where after the political outcomes are all decided if Bitcoin doesn’t immediately move up and then it starts to crash people might assume that the cycle is over. But it could very well just simply be the soft landing scenario…”
He further elucidated that despite an initial tumble, Bitcoin could rally back, reaching new all-time highs by 2025. “You could get a situation where you know Bitcoin sort of falls here and then rallies on up to new all-time highs in 2025,” said Cowen.
This perspective from Cowen serves as an important reminder to investors about the inherent volatility of the crypto market. While Bitcoin has the potential to reach new heights, it also carries the risk of significant short-term drops. As always, crypto investors are advised to do their own research and exercise caution when navigating the notoriously unpredictable cryptocurrency market.
