Analyst Benjamin Cowen says Bitcoin could be on the cusp of a major trend shift as a potential 2019 repeat appears
Popular crypto analyst Benjamin Cowen says Bitcoin (BTC) is preparing for a potential trend reversal that could lead to an explosive rally similar to that seen in 2019.
In a new strategy session, Cowen shares with his 783,000 YouTube subscribers that three different technical indicators are converging at a key price level for Bitcoin.
According to Cowen, the 50-week moving average is in a downtrend and the 200-week moving average is in an uptrend, both of which are moving towards each other. The two moving averages seem likely to meet at BTC’s recent high of around $25,000.
“You have 50 weeks [average] come down You have 200 week [average] rising up. And then the price goes up. They also have the previous local peak at $25,200. And look at that local spike: right between those two moving averages. It’s almost too perfect that they all converge on the same level.”
Credit: Benjamin Cowen/YouTube
According to Cowen, the convergence point is similar to the conditions of 2019, when an explosive rally past the $6,000 price level took place, although many predicted the price would act as resistance.
“I imagine [breaking $25,000] will be a fight. Besides that… there were a lot of people over here [in 2019] That said, $6,000 will take a long time to break. They said, ‘We’re going to come back down and it’s going to take forever to break.’ And we just cut it through like it wasn’t even there. Okay, so momentum is a powerful thing.”
Credit: Benjamin Cowen/YouTube
Cowen says traders are keeping a close eye on the $25,000 price level as it could indicate if the Bitcoin rally has more gas in the tank.
“There’s a lot of confluence around that $25,000 level and especially after a rally of – that would be 60%… Look what the 60% move does if we can get it. Is it out here? Or will it break through like 2019?…
$25,000 is going to be the level I think a lot of people are looking at bitcoin to see if it can break it and if so how explosive the move beyond is. And if not, does it just come down like 2015?”
Bitcoin is trading at $22,752 at the time of writing.
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