Cryptocurrency analyst Benjamin Cowen is issuing a warning on Bitcoin (BTC) as the flagship digital asset hovers below $100,000.
In a new video, Cowen tells his 858,000 YouTube subscribers that a continued rise in the yield on the US Treasury 10-year will have a bearish impact on Bitcoin.
According to Cowen, Bitcoin could behave similarly to what happened in the second half of 2023 when the crypto king plunged below a range low at around $30,000 and stayed subdued for weeks.
“…watch the 10-year yield if it keeps going up it’s going to be a headwind for Bitcoin…
…what happened [in 2023] was Bitcoin went all the way up, it came back down but eventually it really dropped below $30,000 and stayed below $30,000 for a number of weeks. And because of that the market got weaker and weaker and weaker until it sold off and found demand down here [below $25,000].”
According to Cowen, Bitcoin could drop by up to 28% from the current level if its price action mirrors that of 2023.
“So if Bitcoin has to follow that [2023] blueprint, which is not even at the same time of the year when you would normally see something like that, but if it does because the 10-year yield just does not relent, then you would likely see Bitcoin spend some time around $88,000, $89,000 for a while before going back and testing maybe $70,000 right and then trying to find support there.”
The widely followed analyst further says that Bitcoin’s price action around the $100,000 level will likely determine the flagship crypto asset’s short-term trajectory.
“So I think $100,000 is going to be kind of the line in the sand… [if] Bitcoin gets rejected again [at $100,000] and it comes back down here and gets below $90,000 then this [2023] outcome is more likely where it just follows what the S&P [500 index] did and the Russell [2,000 index] did and gives back those post-election gains in the short term.”
Bitcoin is trading at $96,900 at time of writing.
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