Here is the worst case scenario for Bitcoin, according to crypto analyst Benjamin Cowen

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Closely followed crypto analyst Benjamin Cowen describes what he believes is the worst possible scenario for Bitcoin as BTC struggles to recover to the $ 60,000 level.

In a new strategy session, Cowen examines what he calls the “bull market support band,” which is a combination of the 20-week Simple Moving Average (SMA) and the 21-week Exponential Moving Average (EMA). weeks.

According to the analyst, once BTC successfully retests the bull market support band, it never drops below that price again. Since BTC last found support for the group when it went down from $ 40,000 in October, Cowen says he’s never seen Bitcoin go below it again.

“Anytime we hold it as a support, we tend not to take it down, at least not on the weekly schedule. So that makes me believe that there is a good chance that Bitcoin will not go below $ 40,000, because if it did, I would say that at some point something is different and it doesn’t. doesn’t look so good.

Cowen also notes that the last major Bitcoin correction that took BTC from $ 52,000 to around $ 40,000 was a 25% drop. For Bitcoin to repeat the same 25% correction, the crypto king would hit around $ 51,500, which is exactly the support band of the bull market.

“Right now we have the bull market support band which will hopefully help us hold the line. This is where the bulls like to come out and hold the line. Even though we go below that, there have been instances in the past where we came back just above the following week. If you want my opinion on the market, I think there are a lot of reasons people are bearish, there are a lot of reasons people are bullish, but you take everything into consideration, I think the market leans bullish macro not bearish macro. “

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