A widely followed crypto analyst is predicting further rallies for Bitcoin (BTC) as the crypto king hovers above the $30,000 level.
In a new strategy session, crypto analyst Benjamin Cowen tells his 783,000 YouTube followers that the top crypto asset by market cap looks poised to build on the surges that started this year.
However, Cowen warns that BTC tends to consolidate for weeks or months after spiking.
“One interesting thing about these rallies that Bitcoin has had, off of the 20-week (moving average) or at least once it gets above it, is oftentimes a bulk of the move happens pretty quickly and then you spend the next month or two consolidating.”
Using examples from BTC’s earlier rallies this year, Cowen says that Bitcoin traders should expect lengthy consolidation periods following a burst to the upside.
“[The rise in early 2023] occurred really quickly, and we did technically go higher a few weeks later, but it was mostly just a kind of a slow bleed with a higher high at some point.
Same thing [in March’s rally]. The bulk of the move came in that first week and then we did move up a little bit a couple weeks later, but then we still ultimately consolidated for a couple of months after that.
So you could argue that whatever is going to happen in [the latest upswing] is probably going to happen within the next couple of weeks or so based on what we saw over here, and then after that, you could see some type of longer consolidation period.”
Looking at Cowen’s chart, he appears to predict Bitcoin could rally to a high of about $33,000 before slowly pulling back to about $29,100 by September.
Cowen also says that Bitcoin appears to be flashing vibes of its 2019 bullish price action when BTC ignited three 80% rallies from trough to peaks. According to the top trader, Bitcoin has printed two rallies of about 60% so far this year and could be in the midst of a third surge that can propel the top crypto close to $40,000 – if history repeats.
Bitcoin is trading for $30,588 at time of writing, a fractional decrease during the last 24 hours.
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