Bitcoin Analyst Benjamin Cowen Identifies Crucial Point for BTC, Predicts Upside Potential with Key Development
Analyst Benjamin Cowen has suggested that Bitcoin’s chances of further upward movement will be enhanced if the primary cryptocurrency surpasses a crucial moving average on the weekly chart.
In a recent video, Cowen conveyed to his YouTube audience of over 803,000 subscribers that Bitcoin is currently at a pivotal juncture and stands ready for an extended surge if it breaks above the 20-week moving average and maintains that level as a supportive foundation.
Reflecting on past trends, Cowen remarked, “In 2021, I said something very similar. I said if we can hold the 20-week Smooth Moving Average (SMA), we should have clear skies ahead. And we did for a little while. We did put in a new all-time high.”
To replicate the significant rallies historically witnessed months after halving events, Cowen believes Bitcoin must breach the 20-week SMA. He highlighted that Bitcoin’s recent price action mirrors the patterns observed in 2013.
“If you look at 2013, what happened is we wicked above the 20-week SMA a couple of times just like we just did. But then ultimately it took about a month to get back above it. And you can see that back in 2013 we were also generally setting a series of lower highs as well we slowly worked our way back above the 20-week Smooth Moving Average, by August came back down, held it as support in September and then we had a Q4 rally.”
As of the time of reporting, Bitcoin is trading at $64,400.
Cowen’s analysis underscores the importance of Bitcoin surpassing the 20-week SMA to potentially trigger a momentum similar to the historical price surges seen post-halving events. The parallels drawn to the 2013 market behavior indicate a potential roadmap for Bitcoin’s future price movements.
The visual representations shared by Cowen in his video illustrate the historical context and potential implications for Bitcoin’s current position in the market. The analysis suggests that Bitcoin’s ability to break above and sustain the 20-week SMA could pave the way for a significant rally, akin to previous market cycles.
In conclusion, Cowen’s insights shed light on the critical juncture Bitcoin finds itself in and the potential paths forward based on historical price movements and technical indicators. The coming weeks will likely be crucial in determining whether Bitcoin can break above the 20-week SMA and embark on a sustained upward trajectory.
