December Crash For Bitcoin ? Cowen's Alarming Analysis

The storm may be looming for Bitcoin. This time, it isn’t the result of the usual market fluctuations, but rather an analysis that anticipates a drop likely to shake investors’ confidence. As Bitcoin flirts with a new historical high around $76,000 on this November 8, 2024, respected analyst Benjamin Cowen warns of a potential substantial drop in price. According to him, a reversal could take shape in early December, coinciding with the publication of the American employment report.

Towards a Bitcoin drop in December ?

Benjamin Cowen, CEO of ITC Crypto and an influential figure in the crypto analysis field, shared an alarming prediction. For him, Bitcoin could be on the brink of a significant drop. “I think a Bitcoin pullback could happen as early as December, and it will be significant enough to cause fear,” he declares in a video addressed to his community. According to Cowen, this decline could occur following the publication of the monthly American employment report scheduled for December 6. He anticipates a potential correction ranging from 12 % to 46 % from current levels. Such a situation presents two distinct scenarios: either a moderate correction around $65,000, or a more pronounced drop to $40,000.

However, Cowen remains cautious about the possible outcomes of this correction. He emphasizes that the drop, if it occurs, may be only temporary. “What remains unclear for me is whether this drop will serve as a simple support test before a rise in 2025, or if it will mark a deeper low,” he adds. Thus, these words reveal the uncertainty prevailing, even among experts, about the direction the market will take in the coming months.

Between political uncertainties and market cycles

For Cowen, the anticipation of a Bitcoin drop goes beyond a simple technical prediction. It is rooted in a very particular macroeconomic and political context. The post-election economic climate in the United States, combined with employment figures, could indeed influence the reaction of crypto investors. Cowen suggests that some may interpret this pullback as a sign of the end of a cycle for Bitcoin, but he adds nuance: “this could very well be a simple consolidation before a new rise towards unprecedented heights in 2025.” Such analysis echoes past trends, where corrections have often preceded periods of strong growth.

This potential correction, although temporary, could have lasting implications on market sentiment. In a context of rising interest rates and global economic uncertainties, a drop in Bitcoin could also influence other crypto assets, amplifying sector volatility. However, Cowen suggests that a return to lower levels could also provide investors with a new buying opportunity before a potential bullish recovery.

If the scenario envisioned by Cowen comes to pass, caution will remain essential for investors, who must avoid succumbing to panic in the event of a sharp drop. This prediction also opens up perspectives for 2025. It suggests that the current volatility could set the stage for new records in the years to come. It remains to be seen whether this movement will be perceived as a mere temporary low or as a deeper indicator of Bitcoin’s resilience limits in the face of global economic fluctuations.