dailyhodl.com
Popular crypto trader and strategist Benjamin Cowen says he’s keeping a close watch on a key price level as bulls try to take full control of the Bitcoin market.
In a new strategy session, Cowen tells his 489,000 YouTube subscribers that bulls must convincingly push Bitcoin above the 200-day simple moving average (SMA) to put an end to the bear trend.
“It’s a pretty important line to get above just to rejuvenate the market and say, ‘Hey, we are no longer in a downtrend. We have decisively broken out of it.’
I would say this is a pretty important level, the 200-day SMA. It’s important because it does provide a level of resistance if history is any indication. And whenever we break above it after we come back down, it tends to lead to a pretty explosive move.”
Cowen says that the 200-day SMA, which is currently around $45,000, perfectly lines up with BTC’s lows in February 2021 and the diagonal resistance that has kept the market bearish since Bitcoin topped out in April.
Looking at the weekly timeframe, the crypto analyst says that the 20-week SMA is also hovering around $45,000, making the level an even more significant resistance point for the bulls.
“We need to have a weekly close above the 20-week [SMA] before we can actually test the 20-week [SMA]. It doesn’t make sense to say it’s a test of the 20-week [SMA] if we end up having a weekly close below it because then it was just a wick. Of course, no one who watches this channel, they sure as hell aren’t getting out of bed for a wick…
I think it makes a lot of sense that we’re getting some hesitation here.”
In the last 24 hours, Bitcoin briefly touched $45,282, according to CoinMarketCap. The leading crypto asset has retraced since then and is trading at $43,349 at time of writing.