The closely followed popular cryptocurrency analyst has evaluated how this will affect the price of Bitcoin (BTC) as the top cryptocurrency begins to break its correlation with global markets.
In a new video, Benjamin Cowen said that while he expects the exchange to have a significant impact on cryptocurrency prices, he highlighted a new development that bodes well for BTC.
“One of the things I think will probably determine what cryptos do to some extent is the stock market. What are S&P and Nasdaq doing? What is interesting to me is that Nasdaq made a lower bottom but Bitcoin did not. I think that looks pretty good for Bitcoin.”
According to Cowen, traders should watch Bitcoin’s performance relative to the bull market support band, as it could be a signal for altcoins to start recovering. BTC’s bull market support band is currently hovering around $47,000. At the time of writing, BTC was trading at $44,062.
“The reason I care about this is because we know that the altcoin market behaves differently when we are above or below it. With Bitcoin above it in the summer of 2020, a lot of people made a lot of money. We’ve been watching all kinds of altcoins derail. Even though Bitcoin was only $10,000, people still made a lot of money. Why? Because the bull market was above the support band. When it was under, many altcoins did not do much.”
Based on Cowen’s analysis, he expects BTC to consistently outperform the Nasdaq in the coming weeks.
“Bitcoin is going through these bullish phases as well as bearish phases against the Nasdaq. Right now, we’re kind of at the end of that line, so hopefully we’ll be back on top.”
The analyst also closely watches Bitcoin’s bull market support band, a technical indicator that combines BTC’s 20-week simple moving average (SMA) and 21-week exponential moving average (EMA).
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