Golden Cross on Bitcoin Chart Triggers Warning from Renowned Analyst

Benjamin Cowen, a well-known cryptocurrency analyst, has identified a pattern in Bitcoin's price movement known as the 'Golden Cross.' This occurs when the 50-day moving average crosses above the 200-day moving average. While this is typically seen as a bullish signal, Cowen warns that investors often experience a price drop shortly after these crossovers.

Cowen notes that in past instances of the Golden Cross, such as in 2019 and 2023, there were pullbacks of between 12% and 15% at the moment of the intersection. He attributes this to the rallies preceding the Golden Cross triggering the intersection by pushing the moving averages higher.

However, immediately after the intersection is complete, the market often sees sell-offs from local highs. Cowen emphasizes that it remains to be seen whether Bitcoin will reach a new high or a lower peak after the sell-off.

Cowen also discusses future scenarios, stating that if a higher peak were to form during the rebound, the bullish scenario would gain strength. Conversely, if the rebound remains weak and forms a lower peak, as seen in 2014 and 2015, the risk of a new downturn in the fourth quarter could increase.