According to crypto analysts, Bitcoin is preparing for the next bull market. Let’s take a look at Kevin Svenson and Benjamin Cowen’s predictions.
Kevin Svenson sees rally for Bitcoin
Kevin Svenson, one of the hit Bitcoin analysts, says that Bitcoin is looking at the moving average convergence divergence (MACD) indicator on the three-day chart, which shows a bounce for BTC due to current conditions. MACD is used to detect trend reversals or continuations. Looking at the graph below, Svenson interprets the historical data:
Bitcoin three-day MACD cross will likely lead to continuation. The three-day candle closes tonight. We will confirm the intersection very soon.
On the other hand, when it comes to Bitcoin’s short-term market structure, Svenson says BTC is flashing the “textbook” Adam and Eve double bottom pattern.
Looking at shorter timeframes, Svenson mentioned a bullish formation. The analyst says that BTC could trade in a bullish pennant formation at the $21,400 support:
BTC is testing the bottom of the pattern. It needs to hold this space to protect the structure.
Svenson reminds his followers that although he expects a rise in BTC, Bitcoin is still in a long-term bear market:
The trend is your friend until the end of the trend. The short-term trend is up with some momentum. The long-term trend is down. In the short to medium term, I play this bullish. But then I’m wary of a macro low high.
BTC prepares for next bull market, according to Benjamin Cowen
Popular crypto analyst Benjamin Cowen says that Bitcoin is nearing the end of its bear market. In a recent strategy session, Benjamin Cowen said he is looking at Bitcoin’s continued return on investment (ROI). The analyst says he compared BTC’s current performance specifically to the 2018 and 2014 bear cycles. According to Cowen, Bitcoin’s continued ROI could gauge the imminence of a bull market. Analyst, looking at the chart below, comments as follows:
The last time the 90-day ROI really got this bad was in 2018. Before that, it expired in 2014. Both had to hit rock bottom. But he did it on both. You can see that we finally have another foot that landed on a market cycle floor.
Cowen, whose analysis we share as Kriptokoin.com, also looks at the 180-day ROI of Bitcoin. The analyst says this shows that BTC may be tied to a final sell-off before it prepares for the next market cycle:
We will drive up the 180-day [ongoing] ROI. Because this is probably the most interesting from a bear market perspective. It has been in a pretty brutal downtrend for a while. But perhaps the most interesting thing to do is compare it to 2018 and 2014, where we had some pretty brutal downtrends for a while. Then things got a little bit cold and then you got into this kind of final leg and then the accumulation phase.
Finally, for future levels, Cowen said:
You could argue that Bitcoin is in the last part of the bear market or the beginning part of the accumulation phase for the next market cycle. On a macro scale, buying Bitcoin below $20.00 is a very attractive price. But in the short term, in line with a one-year [ongoing] return on investment, we may eventually see another step towards a cycle bottom. There is definitely such a possibility.
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