According to popular crypto analyst Benjamin Cowen, three metrics reveal that Bitcoin (BTC) could see a price jump in June.
In a recent strategy session, Cowen told 746,000 YouTube subscribers that the first metric to signal a Bitcoin rally was the US dollar index.
“We know that while the US dollar index is rising in a parabolic rally, Bitcoin is falling. We’ve seen this many times in the past. Also, if we simply pull up, you can see that the dollar has been in a parabolic rally for the past few months.
However, you can see that it has been pulling back a bit lately. Now that doesn’t mean – unfortunately – the dollar rally is over. It can only be suspended for a while. But looking strictly at the dollar, this pullback leads us to believe that risk assets could start doing well for a few weeks.”
The second point is that the S&P500 and Nasdaq have made “pretty strong” bounces from their local bottoms. The analyst states that crypto has not yet followed these movements.
“I think this is because we are in a time of macro risk taking and I would argue that cryptocurrencies are inherently riskier than stocks. So when stocks seem to be experiencing some relief for at least a few weeks, they’re the first to move, and as long as that holds up, crypto will be next in line to rise.”
He also notes that the 90-day exponential moving average (EMA) of the Bitcoin Fear and Greed Index is “lower than ever.”
The Fear and Greed Index measures market sentiment with values ranging from 0 to 100. Values between 0 and 24 indicate extreme fear, and scores between 25 and 49 indicate fear. A score between 51 and 74 indicates greed in the market, while a score above 75 indicates extreme greed. Cowen says the Index’s 90-day EMA is currently at 23.56, indicating the possibility of a bounce.
“Why is this important? We’ve never seen this before. Your Fear and Greed [Endeksi] Its 90-day EMA is lower than ever.”
You can check the price movements here.
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.