Popular crypto analyst Benjamin Cowen is warning Bitcoin (BTC) traders that the top crypto asset is currently flashing an ominous indicator.
In a new YouTube video, Cowen tells his 784,000 subscribers that Bitcoin is experiencing a weekly death cross for the first time ever.
A death cross takes place when a short-term moving average crosses below a long-term moving average, reflecting price weakness.
The analyst notes that BTC’s 50-week simple moving average (SMA) is at $24,678 and its 200-week SMA is now at $24,999.
Says Cowen,
“Normally in bear markets, we’re not below the 200-week SMA, like hardly at all. And if [Bitcoin] is, it’s a relatively short period of time. It’s more or less just these wicks for the most part. Now, in this bear market, we’ve basically been below it since June, for the most part…Â
Now [BTC] sort of come back up to [the 200-week SMA], but we have not definitively broken through the level that historically held as support.”Â
Cowen says the worst-case scenario for Bitcoin would be it mimicking the Nasdaq during the dot-com crash from 2000-2002.
“You get that 77% pullback, followed by a 60% rally up to the 50-week SMA, and then followed by a slow bleed into the final low. But do note that even the Nadaq, when you did get that, it actually had sort of a local double top, where it came up to the 50-week, came back down, hovered for a… month, popped back up, and then came down. So that’s actually what the Nasdaq did way back when, so maybe be on the lookout for that.”
BTC is trading at $21,721 at time of writing.
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