Widely followed crypto analyst Benjamin Cowen says Bitcoin (BTC) is setting up for a potential trend shift that could result in an explosive rally similar to the one in 2019.
In a new strategy session, Cowen tells his 783,000 YouTube subscribers that three different technical indicators are converging at a key price level for Bitcoin.
Cowen says the 50-week moving average is on a downward trend and the 200-week moving average is on an upward trend, both moving toward one another. The two moving averages appear likely to meet at BTC’s recent high of around $25,000.
“You have the 50-week [average] coming down. You have the 200-week [average] going up. And then you have the price rallying on up to it. You also have the prior local top at $25,200. And look at this local top: right in between those two moving averages. It’s almost too perfect that they’re all converging to the same level.”
Cowen says the convergence point is similar to the conditions of 2019, which saw an explosive rally past the $6,000 price level, even though many forecasted that price would act as resistance.
“I imagine [breaking $25,000] will be a battle. With that said… there were a lot of people over here [in 2019] that said $6,000 is going to take a long time to break. They said, ‘We’re going to come back down, and it’s going to take forever to break it.’ And we just sliced through it like it wasn’t even there. Okay, so momentum is a powerful thing.”
Cowen says that traders are keeping a close watch on the $25,000 price level as it could indicate whether the Bitcoin rally has more gas left in the tank.
“There’s a lot of confluence around this $25,000 level and especially coming off a rally of – that would be 60%… Look to see what the 60% move does if we’re able to achieve it. Does it stall out here? Or does it break through like 2019?…
$25,000 is going to be the level that I think a lot of people are looking towards for Bitcoin to see can it break it, and if it can, how explosive is the move beyond it. And if it can’t, does it just come right back down like 2015?”
Bitcoin is trading for $22,752 at time of writing.
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- Source: https://dailyhodl.com/2023/01/31/analyst-benjamin-cowen-says-bitcoin-could-be-on-cusp-of-major-trend-shift-as-potential-repeat-of-2019-appears/