Crypto Analyst Benjamin Cowen Says Bitcoin's 16% Dip Is 'Normal' But This Time It Could Develop Into 'Something More'

Renowned crypto analyst Benjamin Cowen has suggested that Bitcoin’s BTC/USD recent 16% drop could potentially lead to a more significant decline, drawing parallels with previous market cycles.

What Happened: Cowen, in a detailed X thread, noted that Bitcoin’s current dip is a normal occurrence, as there have been several 20-22% drops in this cycle.

The apex crypto peaked at $73,750 in mid-March and has since dropped by 16%. However, Cowen warns about a potential further drop.

According to Cowen, the decline feels different because the altcoin/BTC pairs have finally broken support, which usually leads to a capitulation.

He further noted the last cycle also saw shallow drops for Bitcoin until altcoin/BTC pairs broke down, leading to a larger drop for Bitcoin.

He noted that while Bitcoin dropped 30% in the last cycle when the pairs broke down ahead of a bounce, this time the bounce will not come until the $50,000 level is touched.

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Why It Matters: Cowen’s analysis suggests that Bitcoin’s dominance is breaking out, indicating a likely halt in the altcoin rally. He believes a cleanse is needed in the market, as there are too many scams, and only the stronger ones will survive.

Cowen also points out that Bitcoin failed to sweep the high before the pullback to the range lows, unlike the situation leading up to the spot ETF, where it swept the high a week before the launch.

#BTC failed to sweep the high before the pullback to the range lows. Whereas going into the spot ETF, it swept the high 1 week before the launch.

Whatever happens next week (whether a slightly higher high), or a lower high, should be sufficient to break ALT/BTC pairs down. pic.twitter.com/IWGk17y3rV

— Benjamin Cowen (@intocryptoverse) April 13, 2024

Cowen concludes that whatever happens the week after the Bitcoin halving — a slightly higher high or a lower high — should be enough to break the altcoin/BTC pairs down.

While Cowen’s analysis provides a cautious outlook for Bitcoin, investors need to keep an eye on market trends and make informed decisions.

What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

Read Next: Bitcoin Halving Event Could Be A Potential Game-Changer For Mining Industry: JPMorgan

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