Crypto analyst Benjamin Cowen is looking at the possibility that Bitcoin (BTC) just formed a massive double top, which is a bearish pattern that often signals the beginning of a downtrend.
In a new strategy session, Cowen says that rather than a double top pattern, the king crypto appears to be turning a previously hard resistance level into support.
“I don’t consider it to be a double top. What I would say is that we are very likely building out macro-level support. What I mean by that is if we look at, say the weekly time frame, what you’ll notice is that this area here ($60,000) that we previously held as resistance earlier this year… That area that we held as resistance for months is now becoming support. That’s what I see.”
Cowen also says that with all the volume around the $60,000 range, it may end up being the level where the next bear market bottoms out when it comes around.
“I do think there is a decent chance in the future that the current prices could be around the next bear market bottom. It could be lower than we are today, it could be a little bit higher, but I would say around the current prices could be the next bear market bottom. I don’t think Bitcoin is going to $20,000. I don’t think it’s going to $30,000.Â
If you had to ask me what is the floor for Bitcoin, I would probably just base it off the 20-week [moving average]…”
The 20-week simple moving average (SMA) combines with the 21-week exponential moving average (EMA) to create what Cowen calls the “bull market support band.” The 20-week SMA is currently roughly at $47,000 and slowly moving up each day.
Cowen says that Bitcoin may be in the process of forming a long-term macro-level support level which could end up being the “absolute fear” price area in the years to come.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Mia Stendal
