Bitcoin, the largest cryptocurrency by market cap, has regained its bullish trend and is currently trading at $24,445, marking a rise of 9% in the last 24 hours. This positive turnaround in the crypto space can be attributed to US President Joe Biden’s announcement of an emergency backstop for deposits at failing banks.
Despite the recent surge in Bitcoin’s price, analyst and trader Benjamin Cowen has a different perspective. In a new video, Cowen claims that Bitcoin’s current upward movement will not last for long, and he predicts that the flagship currency will see a drastic fall between the $10,000 and $12,000 range before the next bull run.
Cowen’s Analysis and Indicators
Cowen bases his analysis on technical, on-chain, and sentiment indicators currently pointing towards a low for Bitcoin. These indicators are flashing the same signal as they did in June 2022, where Bitcoin had a new bull run after dropping below the $18,000 area. Furthermore, Cowen asserts that there is a possibility that Bitcoin might even drop as low as $10,000, as BTC has historically been pulled back nearly 84% from its peak during bear cycles.
Bitcoin’s Future in 2023
According to Cowen, the year 2023 will be a choppy year for Bitcoin or a year for recovery. He claims that Bitcoin’s bottom largely depends on the Federal Reserve’s interest rate.
Currently, Bitcoin’s immediate resistance level lies at $24,800, and if the bulls maintain their trade above this level, BTC will soon hit $25,000.
