Bitcoin may reach a record low in 2024

A popular crypto analyst warns that the flagship crypto asset BTC $56,661.23 Bitcoin -2.76% Market capitalization $1.12 trillion VOL. 24 hours $4.56 billion could experience a «2019-style correction.»

In a new strategy update, crypto analyst Benjamin Cowen tells his 788,000 YouTube subscribers that the bitcoin price model that preceded the 2019 correction could happen again.

«If it [BTC] does get this engulfing candle that completely wipes out the previous week’s losses, and then we get the next move in the last week of December, then it will be very similar to what we saw in mid-2019, just before the first rate cut [ФРС]. This is something to think about. Will it be in a similar way or not?» the analyst speculates.

Cowen’s chart shows that in 2019, bitcoin dropped from about $ 13,000 to $ 9,167. The chart also shows bitcoin falling to below $ 4,000 at about the same time that interest rates bottomed out in 2019.

Cowen also notes that bitcoin could reach a local high and then decline about a month before a Fed rate cut, as it did in 2019. According to him, some people believe that the Fed’s rate cut could happen as early as January, while most experts are betting on a rate cut in March.

«One of the things we pointed out earlier is that bitcoin hit a local high, again, it wasn’t a big high, and even after that 2019 high, we didn’t even go to set a new low, but that high was reached before the Fed started cutting rates. We have been talking about this for probably over a year. If we draw a line from the first rate cut, which took place in July 2019, we will see that bitcoin actually reached its maximum just before the first rate cut, a month before it.

Now, no one knows when the first rate cut will take place. Some say the Fed will start cutting rates in January. Many think it will happen in March. Of course, much will depend on how the labor market develops by then," the crypto expert explains.

At the time of writing, on December 28, bitcoin is trading at $ 43,041 with a market capitalization of $ 843 billion, up 1.35% Traders made daily trading deals worth $ 26.2 billion. BTC’s dominance in the market has dropped to 49.9%.