Popular crypto trader Benjamin Cowen thinks Bitcoin (BTC) could drop quite a bit further before bouncing back up in price later this year.
Cowen tells his 700,000 YouTube subscribers that Bitcoin’s potential worst-case scenario over the next few months is based on the crypto asset’s 200-week moving average, which currently sits around $19,300.
That metric is moving up quickly, however, and by the second quarter of the year is projected to be around $23,000, according to the analyst.
BTC previously plummeted down to its 200-week moving average during the crashes in December 2018 and March 2020. The trader notes the March 2020 pandemic-induced crash actually brought Bitcoin all the way down to its 300-week moving average.
“It only lasted for about one week or so. It basically was a wick, we came back up and then we ultimately went on a year-long rally, which took us from $3,800 to over about $64,000.”
Cowen predicts BTC could recover with a “sustained bounce” after dropping all the way down to the 200-week moving average at some point in Q2 of this year.
Bitcoin is trading at $36,215.46 at time of writing, down more than 14% in the past week.