Popular crypto analyst and trader Benjamin Cowen is looking at the prospects of Bitcoin (BTC) as the leading cryptocurrency continues to trade below $50,000.
Cowen notes to his 679,000 YouTube subscribers that BTC is currently well below its bull market support band, a technical indicator that’s a combination of the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA).
Bitcoin is trading at $46,265.39 at time of writing and is down more than 2% in the past 24 hours.
The 20-week SMA sits right around $53,000 and the 21-week EMA is just below $51,000, which means Bitcoin could be in for a rough few months, according to Cowen.
“Historically, we know that going below the 20-week SMA, when we have weekly closes below it – it can tend to take several months before we can break back above it.
If you guys remember back in the summer, we broke below in the middle of May, and we didn’t actually break back above it until August.
This time, we broke below it in late November, so it’s been a little over a month so far. I mean it seems completely reasonable that we could still have a ways to go before we can actually break back above it.”
Cowen doubts Bitcoin will have a parabolic Q1, predicting that the top crypto asset will be “somewhat range-bound for a while.”
“I don’t really see a major market cycle mania peak for Bitcoin, not until much deeper into 2022 at the very earliest, and again, it might not be until 2023.”
He does note, however, that if Bitcoin manages to break back above $53,000, then he’d turn bullish on the leading cryptocurrency.
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