Renowned crypto strategist Benjamin Cowen has shared his insights with his substantial YouTube following, predicting a continued downtrend for Bitcoin (BTC) in the coming months. Cowen suggests that Bitcoin is poised for a short-term rally to test its bull market support zone before experiencing further declines, confirming a larger bearish trend.
The crucial bull market support zone, according to Cowen, is defined by the 20-week simple moving average (SMA) at $27,888 and the 21-week exponential moving average (EMA) at $27,227. He suggests that Bitcoin’s trajectory will likely involve a brief test of this zone before resuming its downtrend.
Cowen explains, “A lot of bulls don’t necessarily believe it’s over. And why would you? Technically, the lower low hasn’t been invented yet, so there’s still reason for them to believe. Although, I still think this low will be removed.”
He adds that Bitcoin’s recent behavior reflects the determination of bullish sentiment to make another attempt at breaking through this support zone. However, Cowen envisions a scenario where the cryptocurrency will experience another rejection, potentially falling to a lower low, around $22,890, before attempting a more sustained rally.
Examining his chart, Cowen suggests that Bitcoin might briefly rally to the $28,000 price range before resuming its downtrend, possibly falling below $20,000. Nevertheless, he emphasizes that a successful breakout above the bullish support range is essential for establishing a more sustained bull market that could drive Bitcoin to higher prices.
Cowen underscores that it’s not just about breaking above the support range; Bitcoin must convincingly stay above it over multiple consecutive weeks to confirm a sustained uptrend. He acknowledges that this will be the challenging part of the equation.
At the time of writing, Bitcoin is trading at $26,818, representing a 1.1% increase in the past 24 hours.
Benjamin Cowen’s analysis provides valuable insights for cryptocurrency enthusiasts and investors navigating the complex and volatile crypto market.
