Analyst closely followed in the crypto world Benjamin CowenHe stated that the Bitcoin (BTC) chart follows a certain market structure from 2018.
Posting a new ‘strategy session’ on his YouTube channel, Cowen noted that in January 2018 Bitcoin showed higher lows between $9,000 and $11,000.
Cowen also underlined that Bitcoin eventually formed a ‘crater’ and reached a new low around $5,800 at that time.
“As we saw in 2018, we had a dip, we saw a higher low. So we finally got back to a lower low and trendline. It also resulted in the rejection of the 200-day simple moving average in between.”
According to Cowen, Bitcoin (BTC) continues to reflect the 2018 market structure for the last few months. He highlighted that BTC saw several high lows between $30,000 and $39,000 from January to May, and eventually corrected up to $26,000.
The crypto trader thinks that if BTC really follows the fractal, Bitcoin could be in a strong rally.
“What happened in 2018 was that we’re back to the trendline that shows resistance because in bear markets trendlines tend to show resistance. We’re also back to the 200-day moving average, so there was some convergence between the trendline where we put higher lows and the 200-day SMA.”
Cowen notes that if you hypothetically extended the current 200-day moving average to mid-June, it would likely sit somewhere between $40,000 and $42,000.
“With this detail in mind, we’re like, ‘But does this level matter?’ We should ask the question, my answer to this question is ‘absolutely yes’. The $40,000 to $42,000 level carries a lot of weight with Bitcoin as this is where we were first rejected in January 2021.
We were rejected by Bitcoin in the summer of 2021 after falling below… So if the fractal is out of the game (which is as always a question mark) it means that in the next few weeks, we could see the rally bounce back to around $40,000, plus or minus a few thousand dollars. ”
Bitcoin is trading at $29,305 at the time of writing. The top-ranked crypto asset by market cap has lost more than 2.5% in the past 24 hours.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.