Crypto analyst Benjamin Cowen says that Bitcoin (BTC) is approaching a critical juncture where the flagship cryptocurrency must ultimately choose a direction.
In a new strategy session, Cowen tells his 725,000 YouTube subscribers that Bitcoin is putting in higher lows in a pattern that resembles other periods in BTC’s history.
[adinserter block="1"]According to the analyst, the other times that Bitcoin printed its current market structure were in 2013 when BTC rallied, and in 2018 when it collapsed into a bear market.
“There have been a couple of times where we’ve seen a similar type of price action. One time in 2013, where we also were putting in higher lows. We put in a low, we put in a higher low and then we ultimately went on. And then also in 2018 where were putting in higher lows…
In 2018, we were putting in higher lows and so you could have argued the same thing, but eventually, that low ultimately fell out, and we ended up putting in a lower low.”
With Bitcoin forming a pattern that has historically led to major trend reversals, Cowen looks at what could be next for the leading crypto asset by market cap. In order to regain bullishness and reduce the likelihood of a bear market, the analyst says that BTC needs to reclaim its 200-day simple moving average (SMA), currently located at roughly $49,000.
“If Bitcoin can get the courage to come back up and get back above its 200-day SMA and go into the $50,000 level, then I think that would actually look quite bullish for Bitcoin if we cannot put in a lower low…
What happens if we do put in a lower low? What happens if we do come down and we go down to like the low $30,000 and then we bounce? One thing to consider is that even if we put in a lower low, there’s still a good chance we’ll come right back up to $40,000 or maybe $42,000 to $43,000. There still is a decent chance that that could happen.”
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