Popular crypto analyst Benjamin Cowen thinks that an indicator that has been successful in accurately predicting Bitcoin bottoms is close to doing it again.
In a recent strategy session, Cowen evaluated the 20-week and 100-week simple moving average (SMA) intersection in Bitcoin.
With both SMAs close to each other, Cowen pointed out that they have only crossed twice in Bitcoin history, and both have determined the bottom of a BTC correction.
“Twice, only twice in history, the 20-week SMA has fallen below the 100-week SMA… You may wonder: why does this matter? Or you could say these are just moving averages, lagging indicators, who cares. But let’s see, did it make sense for these two moving averages to intersect?”
While Cowen says that the intersection of these two moving averages always marks the bottom, there could also be a bearish capitulation that he warned about earlier. The analyst says that if the moving averages do cross, it will likely happen late next month or early July.
“And the question is, will 20 weeks go under 100 weeks? If it does, historically speaking, even if there has been a 40% drop, it actually marks the bottom, yielding results. However, that’s what marked the bottom historically, at least that’s what it looks like when viewed this way. So, will they cross soon?
Not in May, most likely not in May, it will probably take some time for them to cross here. If we were to predict the current trend, assuming they continue to move at the same rate, then it will happen in late June or perhaps early July.”
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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.