A widely followed crypto analyst is warning against Bitcoin after BTC failed to breakout and fell to the $66,000 range early Monday.
In a new video update, cryptocurrency strategist Benjamin Cowen tells his 818,000 YouTube subscribers that Bitcoin is showing similarities to the 2019 correction.
“Even if Bitcoin starts to decline, even if it cannot break out of this situation, [resistance around $70,000]if that starts to fade, we'll start to see more similarities to 2019…not necessarily going in that direction, what happened when Bitcoin broke out. [in 2019]there had already been a 75 basis point rate cut and QE (quantitative easing). Now that's not really the case. ”
Cowen suggested further Fed rate cuts may be needed to push Bitcoin above resistance.
“If Bitcoin gets rejected for some reason and people wonder what the heck is going on, I think you just come back to this and say, well, maybe we need another rate cut. , perhaps quantitative easing may be necessary to achieve higher prices.''
At the time of writing, Bitcoin was trading at $66,948, down 2.4% in the past 24 hours.
Looking ahead to the rest of the year, Cowen told his 869,100 followers on social media platform X that Bitcoin (BTC.D) dominance could reach 60% within three months. . BTC.D tracks the percentage of cryptocurrency market capitalization held by Bitcoin.
“After the first rate cut, I said BTC dominance would spike to 59%, then pull back and eventually slowly fall to 60% by EOY (end of the year). This path is still on track. I think BTC's advantage will be 60% by EOY.
The analyst also focuses on the US Dollar Index (DXY), a benchmark for the value of the US dollar relative to a basket of other widely traded global currencies.
A rise in DXY could signal increased selling pressure on Bitcoin and other digital assets as investors may move their funds into the dollar.
“For another week, DXY will continue to rise. So many people were convinced that DXY would crash a few weeks ago. I think it will continue to rise until EOY and fall in 2025.”
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