Prominent cryptocurrency strategist Benjamin Cowen has raised concerns about Bitcoin‘s ability to maintain its position above the $70,000 mark. In a recent commentary shared via the social media platform X, Cowen highlights that this price threshold serves as a crucial psychological barrier for Bitcoin. He suggests that price movements in this vicinity could indicate whether Bitcoin is experiencing cyclical behavior or reacting to macroeconomic conditions.
What Historical Trends Affect Bitcoin’s Momentum?
Cowen notes that Bitcoin typically gains traction during halving years, particularly in the last quarter. However, current macroeconomic indicators and monetary policies may inhibit this momentum. While it’s plausible that Bitcoin could show a cyclical uptick in late 2024, external economic factors could complicate this scenario, potentially pushing any recovery into early 2025.
How Will Upcoming Labor Data Influence Bitcoin?
According to Cowen, Bitcoin’s forthcoming major price movements will likely hinge on U.S. labor data set for release on November 1. If the data disappoints, BTC might see a significant drop. An increase in the unemployment rate could further accelerate this downward trend.
Cowen points out that market participants are closely monitoring the labor report, suggesting that Bitcoin’s trajectory could closely align with economic indicators. A weak labor report may lead to a wave of selling pressure, affecting Bitcoin’s price stability into December.
- Bitcoin’s recent corrections saw drops of 18% in April and 25% in August.
- Current trading stands at $71,239, reflecting a 5% rise.
- Behavior around the $70,000 threshold could dictate short-term market trends.
The upcoming economic data release could play a pivotal role in determining Bitcoin’s prospects. A failure to meet expectations may lead to a difficult period for the cryptocurrency in the near future.