Cowen Warns Bitcoin's 'Upside Down' Structure Faces Crash Risk
Crypto analyst Benjamin Cowen has dubbed Bitcoin's current market structure 'The Upside Down', echoing the term from Stranger Things. Despite rising Treasury yields, higher energy prices and a stronger dollar, Bitcoin has surged to an eight-month high near $87,000.
Cowen notes that his long-standing bearish cycle thesis is no longer working as expected. Bitcoin has jumped above $86,000 despite several macro signals that he expected to push prices lower.
Cowen's 'macroeconomic chain' played out flawlessly, with U.S. Treasury Yields spiking past the 5% threshold to hit 5.15%, the Fed hiking rates by 25bps for the first time in three years, and the DXY double-bottoming to push vertically higher.
Historically, Bitcoin has followed a pattern of collapsing into a deep October cycle low near $44,000 in such scenarios. However, this did not occur, with Bitcoin surging 51% from $57,800 in the last three months to break above $87K.