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Relief Rally Could Take Bitcoin to These Price Levels, Says Crypto Analyst Benjamin Cowen

High-profile crypto analyst and dealer Benjamin Cowen is discussing what a aid rally may seem like for Bitcoin.

In a brand new replace, Cowen says that if Bitcoin rallies within the coming interval, it may bounce off the 50-week easy shifting common (SMA).

Reflecting on historic value motion, Cowen causes {that a} bounce from the present stage, which is slightly below $32,000, may enable Bitcoin to rise by 34% to 62%.

“Where may a bounce come? The 50-week [simple] shifting common – we’ve had a bounce off the 50-week SMA many occasions prior to now… If you return to 2014, we had a bounce off the 50-week SMA. From the 50-week SMA, we went up about 62% or so.

In 2018, we had a bounce off of it. That yr, we went up round 45%. In 2019, additionally type of had a bounce. It flirted with that line for a few months, after which after we moved again up, we went up about 34%.”

Looking at Bitcoin’s historical past of bouncing off the 50-week SMA, Cowen says a aid rally may take BTC to larger value ranges.

“If we do get a bounce off the 50-week [SMA], we will at the least see prior strikes didn’t have us placing in new all-time highs instantly. If we had been to go up, say roughly [based on] the prior strikes … a 34% transfer would take us again up to possibly $44,000. A forty five% transfer would take us up to round $46,000… And a 62% transfer would take us up to round $52,000 or $53,000.”

Cowen says that, though a rally off the 50-week SMA may push Bitcoin above $40,000, he also can see Bitcoin constructing a bigger base earlier than igniting the following leg of its bull cycle.

“I believe it’s essential for the well being of the market, to ensure that us to have a hope of ever going to $100,000, that we truly construct out some decisive help at ranges above $20,000, and up to now, I don’t actually suppose we’ve executed that. The final time we held the bull market help band as help was at $10,000. I would really like to see it at $30,000, that might be essentially the most optimistic factor. But to ensure that us to do this, we’d like to spend a while. This has received to come again down…

A extra bearish case can be we go to $20,000 or one thing… I believe we’d like to maintain it at help, for us to maintain above $20,000 as help, above the 20-week SMA you possibly can be trying on the finish of the yr. You might be early subsequent yr earlier than that occurs.

So I might say be affected person.”

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