Renowned cryptocurrency expert Benjamin Cowen has issued a cautionary statement regarding Bitcoin’s (BTC) current market position, suggesting a potential significant downturn as it hovers around the lower $60,000 mark.

In his latest video briefing, Cowen, a prominent crypto strategist with a substantial following of 802,000 on YouTube, speculates that Bitcoin might see a regression to the $50,000 territory on the weekly chart, coinciding with an anticipated “summer lull.”

Drawing parallels to the market behavior observed in 2021, Cowen postulates that Bitcoin could undergo a similar trajectory with an initial sell-off in late April, followed by a sustained rally commencing in May, and ultimately a dip during the summer period. He asserts, “A descent back into the $50,000s is well within the realm of possibility.”

Furthermore, Cowen observes that the current cycle’s market retractions have been notably less severe than those experienced in previous cycles. He remarks, “The market hasn’t really faced many substantial retractions. The ones we’ve seen have been quite subdued, particularly when contrasted with the last cycle’s retractions, which were predominantly around 20%, with this one in May 2024 being merely a 23% retraction. Post the 2019 peak, we witnessed a retraction of about 50%, which intensified due to the pandemic… Even during the 2016 phase, there were more pronounced retractions, ranging from 30% to 40%.”

Cowen also conjectures that, akin to the notion of diminishing returns, the market is likely to exhibit reduced volatility over time as the financial magnitude required to influence the market price grows exponentially.

At the time of reporting, Bitcoin is valued at $61,537, experiencing a slight uptick over the past 24 hours.

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