Bitcoin Triggers A “Secondary Scare”, Analyst Benjamin Cowen Says

It looks like Bitcoin is triggering a secondary scare among people these days, as the value of the king coin plunges around $25k. Check out the latest reports about all this below.

According to crypto strategist Benjamin Cowen, Bitcoin may experience further decline, even after already correcting by over 15% from its peak in 2023 last month.

In a recent video to his 785,000 YouTube subscribers, Cowen explains that this decline follows a pattern that occurs every four years.

He suggests that the current downturn is due to the S&P 500 stock index, which typically experiences a correction in August or September of its pre-election year.

As the S&P 500 is currently down by a little over 5% since the beginning of August, Cowen predicts that Bitcoin could fall by as much as 39% to 83%, which has been the case in previous “secondary scares.”

“In 2019, once the secondary scare got underway, once we got below the 20-week moving average right or the weekly candle that led us below it, Bitcoin dropped another 61%…

This one 2015… it was about a 40% or 39% drop.

And then in 2011… you had an 82.5% drop before we actually finally bottomed out in the secondary scare…

In all three cases in the pre-halving year, the S&P dropped in Q3 of the pre-election year… And then Bitcoin entered into a downtrend for a while.

And we have three examples: one where we went down about 80%, one where we went down about 40% and one more we went down about 60%.”

Based on historical trends, Cowen identifies three possible scenarios for how much Bitcoin could potentially drop. If it were to experience a 40% drop, similar to what occurred in 2015, it would reach a low of $17,500.

A 61% drop, like what happened in 2019, would bring it down to around $11,400. However, Cowen does not believe it will go as low as an 80% drop, which would significantly decrease its value.

Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading in the red and the king coin is priced at $25,927.