Benjamin Cowen believes that Bitcoin may soon experience a price correction despite recently reaching record highs. In a strategy discussion session on YouTube viewed by 898,000 subscribers, Cowen highlighted the emergence of the “golden cross” pattern on Bitcoin's daily chart—a technical signal that often precedes short-term declines.
A Golden Cross occurs when Bitcoin's 50-day average price rises above the 200-day average, a pattern often interpreted as bullish. However, Cowen notes that in previous cycles—including 2015, 2019, 2020, and 2021—this signal was followed by declines of 10% to 15%.
"After a golden cross, people tend to expect endless profits," he said. "But the market often corrects to balance that optimism."
Cowen points out that investor behavior is a key factor. When prices rise rapidly, traders often adopt overly optimistic short-term forecasts, setting the stage for a pullback.
"These corrections reset expectations," he explains. "They are how the market pauses before the next move."
The analyst does not specify a timeline for the potential decline but emphasizes historical consistency. For example, in 2015, Bitcoin dropped about 30% after a golden cross. More recently, the 2021 correction aligned with his estimate of 10-15%.
The current price surge of Bitcoin has pushed its price to unprecedented levels, driven by institutional acceptance and legal developments. Although Cowen's outlook remains cautious, he acknowledges that long-term trends may overshadow short-term patterns. "History does not repeat itself exactly," he said. "But it is useful for shaping risk."
Traders often monitor moving averages to assess momentum changes. A golden cross contrasts with a “death cross,” where the 50-day average falls below the 200-day average, typically signaling bearish sentiment. The coming weeks will test whether history repeats itself or whether the changing market momentum rewrites the playbook. For now, caution remains a prudent ally.
