Crypto Analyst Benjamin Cowen Predicts Significant Correction for Bitcoin Based on Historical Price Action
Crypto analyst Benjamin Cowen is warning investors that Bitcoin (BTC) may be due for a significant correction based on historical price action. Cowen, who has a large following on his YouTube channel with over 788,000 subscribers, is specifically keeping an eye on Bitcoin’s 100-week simple moving average (SMA). According to Cowen, whenever Bitcoin has crossed above its 100-week SMA in the past, it tends to retest it before continuing its upward movement. Since BTC crossed above the 100-week SMA several months ago, Cowen believes there’s a risk to the downside if history is any indication.
Bitcoin’s 100-Week Simple Moving Average Could Signal a Downside Risk, Says Analyst
Benjamin Cowen, a prominent crypto analyst, is closely monitoring Bitcoin’s 100-week simple moving average (SMA) as a potential signal for a downside risk. Cowen points out that historical price action suggests that every time Bitcoin has crossed above its 100-week SMA, it tends to go back down to retest it before continuing to move upward. This means that there’s a possibility of a significant correction in the near future.
Federal Reserve’s Actions Could Determine Bitcoin’s Support at the 100-Week SMA, Cowen Says
Cowen suggests that the actions of the Federal Reserve could play a crucial role in determining whether Bitcoin will hold the 100-week SMA as support. He points out that historically, around this point in the cycle, Bitcoin tends to retest the 100-week moving average. In 2016, when Bitcoin crossed above the 100-week SMA, it retested it but ultimately continued to move higher. However, during the last cycle, Bitcoin retested the moving average, got a bounce, but then fell through. Cowen believes that the outcome will depend on whether the Federal Reserve achieves a soft landing or if there is a hard landing, similar to the last cycle.
Bitcoin Likely to Retest 100-Week Moving Average in First Few Months of 2024, Analyst Suggests
Based on his analysis, Cowen predicts that Bitcoin will likely retest the 100-week moving average within the first few months of 2024. He believes that this back test will be a crucial moment for Bitcoin, as it will determine whether the cryptocurrency can hold the moving average as a support level. The outcome will likely depend on the actions of the Federal Reserve and whether they can achieve a soft landing for the economy.
Bitcoin Currently Trading 36% Above its 100-Week SMA, Analyst Points Out Potential Correction
As of now, Bitcoin is trading at $42,297, which is approximately 36% above its 100-week SMA. This significant difference between the current price and the moving average suggests that there could be a potential correction in the future. Cowen’s analysis indicates that Bitcoin may need to retest the 100-week SMA before continuing its upward trajectory. Investors should be aware of the historical pattern and the risk it poses to their investment.
Analyst comment
Neutral news.
As an analyst, I believe there is a possibility of a significant correction in the Bitcoin market in the near future. The historical price action suggests that Bitcoin tends to retest its 100-week simple moving average before continuing its upward movement. The outcome will depend on the actions of the Federal Reserve and whether they can achieve a soft landing for the economy.
