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May 30, 2023

Benjamin Cowen Issues Bitcoin Warning, Says BTC Replicating 2019 Correction Pattern

By Daily Hodl Staff

Widely followed crypto analyst Benjamin Cowen is warning that Bitcoin (BTC) may be repeating a 2019 price formation that led to a market correction.

In a new strategy session, Cowen tells his 783,000 YouTube subscribers that the 100-day simple moving average (SMA) could determine whether Bitcoin will decline as it did in 2019.

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He notes that in 2019, BTC dipped below the 100-day SMA after it failed to hold it as support on its first attempt. With Bitcoin now sitting at its 100-day SMA after a correction for the first time in years, Cowen says a similar situation may be playing out.

“So if that’s any indication, then [it] could be in the not too distant future that we go back below [the 100-day SMA] and then we see what’s what and who’s who. Then we figure out, okay, is this a sustained move? Or is it going to fade like 2019?…

So, we’re in this scenario. We had the daily close below the 100-day. We popped back above it, just like 2019, just like 2020. The question is where do you go from here?”

Source: Benjamin Cowen/YouTube

Cowen also says that the 20-day SMA could help forecast if 2023 will see a similar 2019 market correction.

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“In 2019, you’ll see that once we had the daily close below the 100-day, we popped back above the 20-day and then we faded back down. Right now, we just popped above the 20-day again. We just popped back above it…

And another thing that’s interesting when you compare these times is the 20-day crossed below the 100-day [in 2019] after we had this daily close below. The 20-day crossed below the 100-day during that rally back up and then it faded back in. In 2020, the 20-day never actually crossed the 100-day moving average. In 2023 it hasn’t crossed it yet. I don’t know if it’s going to.”

Source: Benjamin Cowen/Twitter

Bitcoin is trading for $27,673 at time of writing, up 0.1% during the past 24 hours. 0.1%

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Featured Image: Shutterstock/Ilya_Levchenko