dailyhodl.com
A widely-followed crypto analyst says the accumulation phase of a lifetime could be coming for leading crypto asset by market cap Bitcoin (BTC).
In a new YouTube update, Cowen tells his 724,000 subscribers that Bitcoin bulls would have a historically attractive opportunity if BTC drops below its 200-day moving average.
“If the bottom falls out, which we don’t know if it’s going to or not, but if it does, and we see that capitulation type event like we saw back in 2018, then this would yield, more than likely, an accumulation phase of a lifetime. Looking back at this chart, anytime Bitcoin goes below the 200-day moving average on the three-day, so really, it’s like the 600-day moving average, anytime it goes below it in the past, that is the golden opportunity of the accumulation phase. of a lifetime.
Anytime it goes below it, you can see in 2014, in 2018, and in 2020 – it’s such a great opportunity for Bitcoin. We’re still just above it right now, I mean I think it’s coming in at around $39k, $39.3-$39.4k depending on the exchange that you use. But you should be aware that if Bitcoin goes below this level [the 200-day moving average], then this would be if history is any indication, a fairly attractive accumulation phase.”
To support the argument, Cowen points to Bitcoin’s relative strength index (RSI), which highlights an asset’s market momentum.
“Okay, so you can see the RSI on the one day, on the three day, you can see that it’s putting in lower highs. If you go look at it on the weekly, again you can see a very similar story. But one of the more interesting things about the weekly is that you can also sort of see where does it historically bottom.
So if you were to take a line and sort of draw at the lowest point, you can see that historically on the weekly RSI, Bitcoin tends to bottom when it reaches around $28k or so. $28k at the lowest – that’s what we’ve seen in the past. There have also been a couple of times, though, where it bottomed at a higher weekly RDI than $28k. You can see that happened back in 2011 and you can see that it happened back in March of 2020. And during those phases, the weekly RSI bottomed at around $35k.”
“The argument is that fairly attractive bottoms for Bitcoin, at least historically, occur between $28k and $35k.”
Bitcoin is trading for $40,193 at time of writing, down 1.8% on the day.