Popular crypto dealer and analyst Benjamin Cowen says Bitcoin might face a couple of months of bearish value motion if it fails to remain above a key metric.
BTC is buying and selling at $46,143 at time of writing, down sharply from its weekly excessive of $52,774 after plunging on Tuesday, in keeping with CoinGecko.
However, the biggest crypto asset by market cap remains to be buying and selling above its 20-week easy transferring common (SMA), says Cowen.
“On some exchanges, we had a wick proper all the way down to the 20-week transferring common… so clearly some persons are wanting to carry the road on the 20-week transferring common and are hoping that it holds as assist in order that we will have the boldness to in the end push to $100,000. Now keep in mind, these strikes to the 20-week are par for the course in a bull market.”
The analyst tells his 532,000 YouTube subscribers that Bitcoin will most likely want to carry the 20-week SMA with a purpose to have a sustained rally for the following a number of months. If BTC closes two consecutive weeks beneath the 20-week SMA, Cowen says it doubtless will enter a three-month bear market earlier than turning bullish once more in 2022.
“Even in a bull market that ought to take us to $100k, going to the 20-week transferring common is one thing that occurs loads of instances, and if we don’t maintain it, I feel we simply kick the can down the highway, after which we’ll maintain it in a couple of months.
The 20-week SMA once more now could be coming in simply over $42,000.”
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