What crypto analyst Benjamin Cowen thinks of Bitcoin (BTC/USD) before a reversal occurs

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  • Bitcoin Could Undergo Another Capitulation Event Around Christmas – Cowen

  • The cryptocurrency is consolidating but lacks upside momentum

  • BTC price may break up or down

when will it happen bitcoin price (BTC/USD) Bottom-Up After Slipping Below the Important $19,000 Level? Cryptocurrency analyst Benjamin Cowen believes that bitcoin will need to undergo a capitulation event before it can change price. Cowen examines historical patterns to explain when this is likely to happen.

Cowen explains that the final capitulation event will take place around Christmas this year. A capitulation event occurs when a large portion of investors succumb to pressure and sell their holdings. Capitulation events are characterized by unusually high trading volumes that coincide with sharp price declines. When the price reaches its lowest point, it signals a market bottom that initiates an uptrend.

With respect to historical patterns, Cowen says that bitcoin bear markets last for about a year. In 2014, he says, the bear market lasted 14 months, compared to 12 in 2018. Thus, if the present is to reflect historical patterns, the dates around December 25, 26, and 27 may occur.

Bitcoin has been too volatile at the end of the year for this important prediction. Cowen thinks $15,000 is an equilibrium price for bitcoin. The analyst says that the cryptocurrency will have to fall below this level to hit the bottom. It will attempt to retrieve the appropriate value.

BTC Outlook As Price Consolidates At $16,000

BTC/USD Chart by TradingView

On the daily chart, bitcoin is volatile and consolidating near $16,000. The MACD indicator is in the bearish zone. The RSI remains below the midpoint, indicating that sellers are in control.

What next for BTC?

Bitcoin Lacks a directional bias. Although the bulls successfully defended $16,000 in a row, they were unable to take the price higher. Recent Fed statements indicate a slower rate hike though.

With the current choppy trading pattern, bitcoin could go either way. As predicted by Cowen, BTC may claim a new bottom. For this to happen, the price must break below the $16,000 support area.

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