Common crypto analyst Benjamin Cowen is warning Bitcoin (BTC) merchants that the highest crypto asset is at present flashing an ominous indicator.
In a brand new YouTube video, Cowen tells his 784,000 subscribers that Bitcoin is experiencing a weekly dying cross for the primary time ever.
A dying cross takes place when a short-term transferring common crosses beneath a long-term transferring common, reflecting value weak point.
The analyst notes that BTC’s 50-week easy transferring common (SMA) is at $24,678 and its 200-week SMA is now at $24,999.
Says Cowen,
“Usually in bear markets, we’re not beneath the 200-week SMA, like hardly in any respect. And if [Bitcoin] is, it’s a comparatively quick time frame. It’s roughly simply these wicks for essentially the most half. Now, on this bear market, we’ve mainly been beneath it since June, for essentially the most half…
Now [BTC] type of come again as much as [the 200-week SMA], however we’ve not definitively damaged via the extent that traditionally held as help.”
Cowen says the worst-case situation for Bitcoin could be it mimicking the Nasdaq through the dot-com crash from 2000-2002.
“You get that 77% pullback, adopted by a 60% rally as much as the 50-week SMA, after which adopted by a gradual bleed into the ultimate low. However do notice that even the Nadaq, once you did get that, it really had type of an area double high, the place it got here as much as the 50-week, got here again down, hovered for a… month, popped again up, after which got here down. In order that’s really what the Nasdaq did method again when, so possibly be looking out for that.”
BTC is buying and selling at $21,721 at time of writing.
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