Bitcoin Golden Cross Triggers Correction Warning: Analyst

Cryptocurrency analyst Benjamin Cowen warns that Bitcoin could drop to the $70,000 to $75,000 range following its recent golden cross. Historically, every major Bitcoin cycle has seen a 10% to 15% correction after a golden cross, regardless of whether the broader market was in a bull or bear phase.

Cowen cites two specific examples: the 2019 and 2023 cycles, where Bitcoin fell by 15% and 12%, respectively, before rebounding and reaching new highs. He notes that these corrections were short-lived and ultimately led to further price increases.

In contrast, during periods when the low was not in place, such as in 2014-2015, Bitcoin initially dropped 10% to 15% before falling by 50% to 60% into deeper lows. Cowen draws a parallel between these events and the current market conditions, suggesting that the price structure is repeating itself.

Cowen emphasizes that the most important signal will come after any potential dip to $70,000 to $75,000. If Bitcoin bounces quickly and puts in a higher high, the bull case strengthens considerably. However, if the bounce produces a lower high or fails to reclaim the prior high, it could indicate that the low is still ahead.