Bitcoin (BTC), Ethereum (ETH) and the stock market will face a similar challenge in the coming weeks, according to analyst Benjamin Cowen. Widely followed crypto analyst Benjamin Cowen says Bitcoin (BTC), Ethereum (ETH) and the stock market all face the same hurdle. Detail cryptocoin.com‘in.
Common thread for Bitcoin, ETH and the stock market
Speaking at a recent strategy session, Cowen looks at what he calls the bull market support band, which is the combination of the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA). According to Cowen, Bitcoin, Ethereum and Nasdaq were rejected at the bull market support band. Cowen says:
[Bitcoin’in] You can see that the bull market is facing resistance from the support band… In fact, this is what we see in many different places. Go check the Nasdaq. It’s a similar story. Two wicks up and then a retracement down. It also didn’t reach the bull market support band…Ethereum is the same kind of thing. We see this pattern happening in many different markets. We also see it in S&P. However, the bull market has reached the support band and actually had a very short wick over it in two separate weeks.
Bitcoin and the cryptocurrency market remain a risky asset class, according to the analyst. There is a lot of resistance in the broader markets, not just crypto. For crypto markets to regain bullish momentum, Cowen says equity markets need to take the lead with some rallies. He says a major upside move in the stock market is likely only possible with crypto bulls reinstating them. Analyst says:
Ideally, we’d like to see it for the stock market in the coming weeks if we want Bitcoin to have a chance to go to the bull market support once again, without having to break some market structure and then retry at lower levels; Having a very large green candle is important. I think a lot of people call it a ‘swallowing candle’, essentially the owners or a lot of bottom-takers come and buy this thing at a level we’ve resisted several times in the past and we’ll just buy it and put a strong candle at the end. In this case, the party can continue in the short run.
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