Here’s the Worst Case Scenario for Bitcoin- Is $12K Incoming?
On Monday, Bitcoin fell for the fifth day in a row before recovering later in the day to trade close to $23,000. Over the last 24 hours, the largest cryptocurrency by market capitalization has lately decreased by around 0.5 percentage points.
While the asset is stuck in a ‘make or break’ position, many analysts are trying to figure out Bitcoin’s course of action in the upcoming months. Benjamin Cowen, a cryptocurrency expert, has set a price objective for Bitcoin (BTC) in case it declines. According to Cowen, Bitcoin’s value might decline by more than 47% from its present level in a “worst-case scenario.”
The analyst asserted that Bitcoin may rise in the following months before “back testing” a diagonal trendline, which would put the king of cryptocurrencies around $12,000 in August 2023.
He said that, “If it were August of 2023, like right around here [at $12,000], and it [currently] rallies on up [to $26,000] and then sort of sits up here for a while, and then comes back down and then that ends up being the bottom [at $12,000]. This is of course assuming November is not the bottom, which admittedly, again, it could be. So the worst-case scenario is something like that.”
Cowen then examines the price of Bitcoin in relation to the 50-week moving average to assess the likelihood that it will fall below the November low. The 50-week moving average, according to the analyst, has previously functioned as a crucial resistance indication following a protracted bear market and may soon be about to do so once more.
According to reports online, below the $23,250 support area, the price of bitcoin began to decline. BTC continued to move in a bearish direction and even fell below the $22,800 mark. The $22,600 support level was tested. The price has created a bottom near $22,599 and is still extending losses.