Closely followed crypto analyst Benjamin Cowen has claimed that Bitcoin (BTC) could repeat a past price action. He warned that the price could fall in such a scenario. Here are the details.
In a new strategy session, Cowen suggested that the price of Bitcoin (BTC) could repeat the 2019 price formation that led to the decline. The analyst considers the 100-day SMA to be an effective indicator in determining the long-term trend of the price. Based on this indicator, Cowen voiced the possibility of a scenario where BTC could drop like in 2019 and fall below the 100-day SMA.
However, Cowen pointed out that Bitcoin fell below the 100-day SMA after failing to maintain support in its first attempt in 2019.
While Bitcoin is at its 100-day SMA after a correction for the first time in years, Cowen thinks a similar situation may be in progress.
“If this is any indication, BTC is in the not-too-distant future. [100 günlük SMA]We can go under and then see what’s what. Is this a sustainable movement or will it fade like 2019? Then we can solve it. So, we are in this scenario. We made the daily close below the 100-day SMA. Just like in 2019, just like 2020, we’re on it again. The question is, where will it go from here?”
Cowen also noted that the 20-day SMA could also help predict whether we will see a market correction similar to 2019.
“In 2019, when we closed the daily close below the 100-day SMA, we went above the 20-day SMA and then went down again. Right now, we’re back over 20 days. We just went over…
And another interesting thing when you compare these times is that after you have this daily close below [2019’da] The 20-day SMA that falls below the 100-day SMA. The 20-day SMA fell below the 100-day SMA during this rally and continued to drop. In 2020, the 20-day SMA never crossed the 100-day moving average. In 2023, it has not passed yet. I don’t know if it will.”
The leading cryptocurrency Bitcoin is trading at $27,818 at press time.
You can follow the current price action here.