Cryptocurrency analyst Benjamin Cowen said that Bitcoin (BTC) is approaching a critical juncture where it must ultimately choose a direction.
In a new video, Cowen says it has recorded higher lows in a pattern similar to other periods in Bitcoin’s history. According to the analyst, other times that Bitcoin reflected the current market structure was in 2013, when BTC rallied, and when it was in a bear market in 2018.
“There have been several instances where we have seen similar price action. Once in 2013, we were also putting higher lows. We put a low, we put a higher low, and we finally moved on. And that’s where we put higher bottoms later in 2018. There were higher lows in 2018 so you could argue the same thing, but in the end, that low ended and we saw a lower low.”
Cowen looks at what might come next for the leading crypto asset by market cap, as Bitcoin has historically created a pattern that has led to major trend reversals. The analyst says that to regain the uptrend and reduce the possibility of a bear market, BTC must retrace its 200-day simple moving average (SMA), which is currently at around $49,000.
“If Bitcoin can come back and find the courage to climb above its 200-day SMA and hit the $50,000 level, then it will actually look pretty bullish for Bitcoin if there is no lower bottom… What if there was a lower value? It is possible? What if we drop and hit the low of $30,000 and then bounce? One thing to consider is that even if we bottom out lower, we still have a good chance of returning to $40,000, or maybe $42,000 to $43,000. There is still a good chance for that to happen.”
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