Cryptocurrency analyst Benjamin Cowen is warning about the future of Bitcoin (BTC) as the leading digital asset struggles to surpass the $100,000 mark. In a recent video, Cowen, who has 858,000 subscribers on YouTube, explains that if the yield on the US Treasury 10-year continues to rise, it could have a bearish impact on Bitcoin. Cowen suggests that Bitcoin might follow a similar pattern to what happened in the latter half of 2023, when the cryptocurrency dropped below $30,000 and remained stagnant for several weeks.
Cowen emphasizes the importance of monitoring the 10-year yield, stating that if it continues to rise, it could pose a challenge for Bitcoin. He points out that during the 2023 period, Bitcoin experienced a significant surge followed by a decline below $30,000, leading to a weakening market. Eventually, the cryptocurrency found support below $25,000.
If Bitcoin were to follow the 2023 pattern, Cowen predicts that it could drop by up to 28% from its current level. He suggests that Bitcoin might spend some time around $88,000 to $89,000 before testing the $70,000 mark and attempting to find support there.
Cowen further notes that Bitcoin’s short-term trajectory will likely be determined by its price action around the $100,000 level. If Bitcoin is rejected at $100,000 and drops below $90,000, Cowen believes that it is more likely to follow the pattern observed in 2023, where it retraced its post-election gains, similar to what the S&P 500 index and the Russell 2,000 index did.
At the time of writing, Bitcoin is trading at $96,900.
Source: Benjamin Cowen/YouTube
