A widely followed cryptocurrency analyst claimed that Bitcoin (BTC) bulls and bears are on the verge of extinction due to a recent turbulence. The analyst, who made bold statements about the leading cryptocurrency, stated:
Halving Process in Bitcoin!
Crypto strategist Benjamin Cowen, in his YouTube video, mentioned that Bitcoin bulls and bears are experiencing a downward trend caused by a fake “death cross” prior to the halving. The halving cycle of Bitcoin occurs every four years and halves the rewards for miners. The next halving is planned for April 2024, making 2023 a pre-halving year. Cowen said:
What usually happens in the years before the halving, and I’ve said this many times, is that we destroy both the bears and the bulls. We destroy both sides, and in this way, by the end of the year, we all get destroyed enough: whether you are a bull or a bear, it doesn’t matter, everyone gets destroyed… Looking at the three years before the halving, this is usually what happens. We destroy both sides, and that’s why I believe it will eventually turn into a lower peak.
According to Cowen, the reason for the destruction of both sides is that Bitcoin is about to witness a death cross that can deceive analysts and investors. A death cross occurs when a token’s 50-day moving average falls below its 200-day moving average. This situation may be an indication that the token could enter a more pronounced decline phase. The analyst emphasized:
What usually happens when a token falls just before hitting a death cross is that people sell because they think there is a death cross. This is a bad thing. However, the reason why it is often a bad strategy is that both the gold cross and the death cross are by definition lagging indicators. They are based on moving averages, and moving averages are of course lagging indicators… When you see a death cross and a gold cross, the tendency for short-term fulfillment is the opposite of what you expect in the short term.
The Impact of US Data on Bitcoin!
The crypto strategist suggests that in the pre-election years, the S&P 500 tends to undergo a seasonal correction, which puts Bitcoin on a downward trend for the rest of the year, regardless of whether the stock index rises or falls. The expert highlighted the following:
We also know that the S&P 500 tends to experience a seasonal correction in the months of August and September in the pre-election years, and we discussed this in July, and what usually happens is that it puts Bitcoin on a downward trend for the rest of the year, regardless of how the S&P 500 does.
