Crypto strategist Benjamin Cowen believes Bitcoin (BTC) will remain in a downtrend for months after retesting a key price range.
Cows tells According to its 787,000 YouTube subscribers, Bitcoin is likely to rise in the short term to test the bull market support band before falling again, confirming the larger bearish trend.
The support band for the bull market, according to the trader, is the 20-week simple moving average (SMA), currently at $27,888, and the 21-week exponential moving average (EMA), currently at $27,227.
Says Cowen,
“A lot of bulls don’t necessarily believe it’s over. And why would they? Technically, a lower low hasn’t entered yet, so there’s still reason to believe. Although I still think this low point will be removed.
The bulls give it another chance. They try again. And they’re going to find out whether they can break through it or not. If they can’t break through, if we go a week or two and the bulls can’t break through, then it’s more likely that this will just fade back out and hit a lower low. [around $22,890] and then eventually they will try again.
Looking at his chart, Cowen appears to be predicting a brief rise for Bitcoin towards the $28,000 price area before resuming the downtrend and dropping below $20,000.
Ultimately, Cowen says Bitcoin could break the tie and “create a more sustainable bull market that could perhaps take us to much higher prices.”
Cowen also says that Bitcoin must not only break above the bull market support band, but also convincingly stay above it to confirm an overall uptrend.
“But in the near term, I think it’s more likely that we see rejections through the bull market support band, and if we get above that, you would still have to see multiple consecutive weekly closes above it for it to really mean anything. .
That’s the hardest part.”
Bitcoin is trading at $26,818 at the time of writing, up 1.1% in the past 24 hours.
I
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney