Looming Test for Bitcoin Could Determine Strength of Bull Market, According to Analyst Benjamin Cowen
Crypto analyst Benjamin Cowen says Bitcoin (BTC) will face a critical test this September that could determine the future of its bull market.
In a new strategy session, Cowen claims that in September of each year since 2017, Bitcoin tested the 20-week moving average and either bounced off it or plunged through it.
“August can actually be a fairly decent month for Bitcoin. But what’s more interesting to me is September. Why? Because every September for the last four years Bitcoin has tested the 20-week moving average.”
Cowen says that if Bitcoin once again tests the 20-week moving average, the reaction of market participants could foreshadow BTC’s price action in the coming months.
“What I think could happen in September is a test of the 20-week, and this test of the 20-week – if we get it – will instrumentally determine the level of bullishness that Bitcoin will have for the next several months following October, November, December, maybe January, February, March, April – same thing last year. It will be instrumental in determining – are we going to get bullish now, or do we kick the can down the road a few months?”
Cowen says that although Bitcoin bulls may fret about a correction down the 20-week moving average, which is currently near $43,500, upward action is likely to occur if BTC can hold that level as a support.
“Honestly, this is not a bad possibility because… If we hold it as support, then that’s when good things happen. That’s when good things happen – when we hold the 20-week as support. That’s what I would be looking for.”
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