dailyhodl.com
Crypto strategist Benjamin Cowen believes that Bitcoin (BTC) will continue on a downward trend for months after retesting a key price range.
Cowen tells his 787,000 YouTube subscribers that Bitcoin will likely move upward in the short term to test its bull market support band only to decline afterward, confirming the larger bearish trend.
The bull market support band is formed by the 20-week simple moving average (SMA), currently at $27,888, and the 21-week exponential moving average (EMA) currently at $27,227, according to the trader.
Says Cowen,
“A lot of the bulls don’t necessarily believe that it’s over. And why should they? Technically, there hasn’t been a lower low put in yet, so there is still reason for them to believe. Although, I still think this low will be taken out.
The bulls are giving it another chance. They’re giving it another go. And they’re going to find out whether they can break through it or not. If they cannot break through, if we spend a week or two and the bulls cannot break through, then what’s more likely to happen is this likely just fades back down and puts in a lower low [around $22,890] and then eventually they’ll try again.”
Looking at his chart, Cowen appears to predict a brief surge for Bitcoin to the $28,000 price area before resuming its downtrend and falling to below $20,000.
Eventually, Cowen says Bitcoin could break through the band and create “a more sustained bull market that might actually be able to take us to much higher prices.”
Cowen also says that Bitcoin must not only break above the bull market support band but remain above it convincingly in order to confirm an overall upward trend.
“But in the short term, I think it’s more likely that we do see rejections by the bull market support band, and if we do get above it, you would still need to see multiple consecutive weekly closes above it for it to really mean anything.
That’s the hard part.”
Bitcoin is trading for $26,818 at time of writing, up 1.1% in the last 24 hours.
Generated Image: Midjourney