Crypto strategist Benjamin Cowen believes that Bitcoin (BTC) will proceed on a downward pattern for months after retesting a key value vary.
Cowen tells his 787,000 YouTube subscribers that Bitcoin will seemingly transfer upward within the brief time period to check its bull market help band solely to say no afterward, confirming the bigger bearish pattern.
The bull market help band is fashioned by the 20-week easy transferring common (SMA), at present at $27,888, and the 21-week exponential transferring common (EMA) at present at $27,227, in response to the dealer.
Says Cowen,
“A number of the bulls don’t essentially imagine that it’s over. And why ought to they? Technically, there hasn’t been a decrease low put in but, so there may be nonetheless motive for them to imagine. Though, I nonetheless suppose this low might 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 not break by way of, if we spend per week or two and the bulls can’t break by way of, then what’s extra more likely to occur is that this seemingly simply fades again down and places in a decrease low [around $22,890] after which ultimately they’ll attempt once more.”
Taking a look at his chart, Cowen seems to foretell a short surge for Bitcoin to the $28,000 value space earlier than resuming its downtrend and falling to beneath $20,000.
Ultimately, Cowen says Bitcoin might 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 greater costs.”
Cowen additionally says that Bitcoin should not solely break above the bull market help band however stay above it convincingly so as to verify an general upward pattern.
“However within the brief time period, I believe it’s extra seemingly that we do see rejections by the bull market help band, and if we do get above it, you’d nonetheless must see a number of consecutive weekly closes above it for it to essentially 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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