Bitcoin May Experience Major Price Decline Before April 2024 Halving, Analyst Warns

Cryptocurrency analyst Benjamin Cowen has issued a warning regarding a potential significant decline in Bitcoin’s price ahead of its halving event scheduled for April 2024. On Wednesday, he highlighted historical trends that have typically resulted in considerable price drops prior to halving events, including a notable 50% decrease during the early stages of the pandemic.

Cowen shared his insights with his 770,000 followers on the social media platform X (formerly known as Twitter), noting that the crypto market appears to be entering a tough phase characterized by an increase in Bitcoin’s market dominance. He described this period as particularly harsh, suggesting that investors are becoming more cautious.

The analyst raised concerns about the decline in liquidity within the cryptocurrency market and the waning buying power of altcoins. He pointed out a stagnant total market capitalization that resembles figures seen in February and August 2022. According to Cowen, these indicators point to a potential “lower high” scenario and a possible 50% drop in Bitcoin’s price.

In his analysis, Cowen also remarked on the underperformance of the ETH/Bitcoin trading pair, attributing this to a distribution phase caused by a lack of new investment capital. Currently, Bitcoin is trading around $28,392.

Additionally, Max Keiser has warned that societal unrest often precedes significant rises in Bitcoin’s value. Currently, Bitcoin’s trading value is approximately $28,582, reflecting slight gains. This aligns with Cowen’s prediction of a possible drastic decline in Bitcoin’s price to around $15,000, based on historical data that shows sharp reductions before previous market cycles experienced significant bull runs, particularly leading up to the pandemic.