Widely followed crypto analyst Benjamin Cowen warns that Bitcoin (BTC) may be repeating a price discovery from 2019 that led to a market correction.
In a new strategy session, Cowen tells are 783,000 YouTube subscribers that the 100-day simple moving average (SMA) could determine whether Bitcoin will fall like it did in 2019.
He notes that BTC dipped below the 100-day SMA in 2019 after failing to hold it on its first try. With Bitcoin sitting at its 100-day SMA for the first time in years after a correction, Cowen says a similar situation may be playing out.
So if that’s any indication, then [it] could be in the not too distant future that we go back below [the 100-day SMA] and then we see what’s what and who’s who. Then we figure out, okay, is this a sustainable move? Or is it going to fade like 2019?…
So we’re in this scenario. We had the daily close under 100 days. We bounced back, just like 2019, just like 2020. The question is where do you go from here?
Cowen also says the 20-day SMA could help predict whether 2023 will see a similar market correction to 2019.
“In 2019 you will see that once we got the daily close below 100 days, we got back above 20 days and then faded again. At the moment we have just surpassed 20 days. We just jumped out again…
And another thing that’s interesting when you compare these times is that the 20-day below the 100-day [in 2019] after we had this daily closure below. The 20-day came back below 100 days during that rally and then it faded again. In 2020, the 20-day never crossed the 100-day moving average. In 2023, he is not over it yet. I don’t know if it will continue.”
Bitcoin is trading at $27,673 at the time of writing, up 0.1% over the past 24 hours. 0.1%
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