Bitcoin Could Undergo a ‘Little Bit Bigger of a Drop’ if Indicator That’s Acted as Support Flips: Benjamin Cowen

Widely followed analyst Benjamin Cowen is warning that Bitcoin (BTC) could fall further after the flagship crypto asset hit a low last recorded in February.

Cowen tells his 801,000 YouTube subscribers in a new video that Bitcoin could experience more downward pressure if the price falls below the 100-day simple moving average (SMA).

“In the short term the thing to keep an eye on with Bitcoin is going to be your 100-day moving average because that is where we are right now. We just swept these lows [at $60,000]. So that’s what I would keep an eye on.

The 100-day SMA has been somewhat of a support here a couple of times… so you know if the bulls are going to try to hold, I imagine they’re going to try to make it stand here…

If they don’t hold it then your next area that you’re going to look at is going to be your bull market support band. And that’s all the way down at around $55,500 to $56,200. So that would be a little bit bigger of a drop.”

Source: Benjamin Cowen/ YouTube

Bitcoin is trading at $57,943 at time of writing, down by around 22% from the all-time high reached on March 14th.

On whether Bitcoin is likely to reach an all-time high earlier than in previous cycles (left-translated peak) or will similarly witness an all-time high to previous cycles (normal peak), Cowen says,

“There’s a lot of sort of academic discussions between left-translated peak or normal peak…

what if this just ends up being sort of a mid-cycle top that’s just occurring a little bit later because rate cuts are a little bit later, we cool off for a while and we just pick back up in the post-halving year? Definitely an option.

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If that doesn’t happen and we just pick up now then I would start to believe more so in the left-translated peak idea.”

Source: Benjamin Cowen/ YouTube

 

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