Bitcoin Analyst Benjamin Cowen argues that history indicates a massive correction is imminent

Benjamin Cowen, an analyst, predicts that Bitcoin’s (BTC) price will enter a correction phase similar to previous market cycles as the cryptocurrency king hovers around $40,000.

Cowen informs his 789,000 YouTube viewers in a new strategy session that Bitcoin has a history of huge market corrections as it approaches halving.

The Bitcoin network experiences a halving event every four years, when the incentives given to miners are reduced by half. April should bring about the subsequent halving.

Cowen claims that Bitcoin usually falls to test the 100-week simple moving average (SMA) during the pre-halving correction.

“At around the same time, during the pre- or post-halving year, we have also evaluated the 100-week SMA. In that cycle, we conducted our tests here, around November 2011, shortly before the halving year came. We conducted the 100-week SMA test in January and February of the halving year two cycles ago (2016).

We tested it again in March 2020 on the previous cycle. You might argue that the epidemic was the only reason for testing it, but that has been the case with every cycle. Even more so, we sank below it. Ignore the exam. After reaching the 100-week simple moving average (SMA), we continued to decline by 45 percent from the previous cycle…

Today, where do you think that would land you? Reverting to the previous low of $15,355 would represent a 45% decline below the 100-week simple moving average [at $28,176].” In the past day, the price of bitcoin has dropped around 3% to $40,000.

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