Renowned crypto analyst Benjamin Cowen has issued a warning regarding a potential sharp correction in Bitcoin (BTC) 
$98,412. In a recent strategy session on his YouTube channel, Cowen highlighted that the extension of Bitcoin’s 20-week simple moving average (SMA) signals a downturn. He emphasized the need for careful monitoring of the market, stating, “The extension of the 20-week moving average indicates that Bitcoin is in a range where significant corrections could occur.”
Bitcoin May Retest Support Levels
Cowen pointed out that Bitcoin could return to the bullish market support band created by the 20-week SMA and the 21-week exponential moving average (EMA) due to a potential correction. He noted that this band currently lies between $72,000 and $80,000.
“There is a possibility of Bitcoin falling back into the bullish market support band. However, it managed to recover and rise above this band the last time,” Cowen remarked, suggesting that past movements might provide clues for the future.
Additionally, he highlighted that while Bitcoin undergoes this correction, it could retest a trendline situated around the $60,000 mark. “We should not overlook the possibility of this trendline being retested,” he stated, noting that similar patterns have been observed in Bitcoin’s previous cycles.
Investors Need to Exercise Caution
Currently, Bitcoin’s price stands at $98,610, reflecting a 5.8% increase over the past 24 hours. However, the signals indicated by technical indicators suggest a need for caution in the market.
As Cowen warns, the likelihood of a Bitcoin correction raises certain risks in the market. Investors should consider that such corrections might increase market volatility. Market analyses and technical indicators provide various scenarios for future price movements.
It is advised that investors review their risk management strategies and be prepared for potential corrections.
