Crypto strategist Benjamin Cowen believes that Bitcoin (BTC) will proceed on a downward development for months after retesting a key worth vary.
Cowen tells his 787,000 YouTube subscribers that Bitcoin will seemingly transfer upward within the brief time period to check its bull market assist band solely to say no afterward, confirming the bigger bearish development.
The bull market assist band is shaped by the 20-week easy shifting common (SMA), at present at $27,888, and the 21-week exponential shifting common (EMA) at present at $27,227, in line with the dealer.
Says Cowen,
“Lots of the bulls don’t essentially consider that it’s over. And why ought to they? Technically, there hasn’t been a decrease low put in but, so there’s nonetheless purpose for them to consider. Though, I nonetheless suppose this low can be taken out.
The bulls are giving it one other probability. They’re giving it one other go. They usually’re going to search out out whether or not they can break by way of it or not. If they can’t break by way of, if we spend per week or two and the bulls can’t break by way of, then what’s extra prone to occur is that this seemingly simply fades again down and places in a decrease low [around $22,890] after which ultimately they’ll strive once more.”
his chart, Cowen seems to foretell a short surge for Bitcoin to the $28,000 worth space earlier than resuming its downtrend and falling to beneath $20,000.
Ultimately, Cowen says Bitcoin may break by way of the band and create “a extra sustained bull market that may truly have the ability to take us to a lot increased costs.”
Cowen additionally says that Bitcoin should not solely break above the bull market assist band however stay above it convincingly to be able to verify an total upward development.
“However within the brief time period, I believe it’s extra seemingly that we do see rejections by the bull market assist band, and if we do get above it, you’d nonetheless have to see a number of consecutive weekly closes above it for it to actually imply something.
That’s the laborious half.”
Bitcoin is buying and selling for $26,818 at time of writing, up 1.1% within the final 24 hours.
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