Cryptocurrency analyst Benjamin Cowen warns that while Bitcoin (CRYPTO: BTC) has soared to new all-time highs, it may face a short-term correction following a golden cross expected this week.
What Happened: In a May 21 podcast, Cowen said that “anytime Bitcoin hits a new all-time high or a new cycle high, it’s worth celebrating. But historically, golden crosses are often followed by 10-15% pullbacks.”
He referenced similar setups in 2019, 2020, and 2021, when Bitcoin dipped soon after golden crosses, noting that a 10% retrace would bring BTC back near $100,000, while 15% would test $95,000, both near key moving averages.
While acknowledging his incorrect prediction about a similar pattern in late 2023, Cowen emphasizes the importance of learning from both successful and unsuccessful forecasts.
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“If there is a pullback after this golden cross, it would be a fairly normal pullback,” he explained, noting that a 10% correction would bring Bitcoin back to approximately $100,000, while a 15% drop would test the 50-day and 200-day moving averages around $95,000.
Why It Matters: Cowen sees the current window, late May to early June, as a historically strong period for Bitcoin, typically followed by Q3 softness, as seen in both 2023 and 2024.
Rising macro risks, such as a 10-year treasury yield at 4.6%, approaching 5%, and the S&P 500’s stagnation, could weigh on broader risk sentiment.
Still, Cowen remains long-term bullish, particularly on Bitcoin’s outperformance versus Ethereum (CRYPTO: ETH) and XRP (CRYPTO: XRP).
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“Bitcoin gives you exposure to the upside, while minimizing downside risk,” he said, highlighting its rising market dominance even during consolidation.
Also Read: Bitcoin To $120,000 Next? Here’s What Technical Analysis Says
What’s Next: While a golden cross pullback could pressure BTC near-term, Cowen expects it to be short-lived, predicting a renewed push higher into Q4.
For investors seeking stability in the face of volatility, Bitcoin remains the preferred asset.
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