Bitcoin (BTC) can rise significantly from here, says analyst Benjamin Cowen – but it is a catch

A popular cryptanalyst uses a specific calculation to plot where Bitcoin (BTC) may be heading in the price charts.

In a new strategy session, Benjamin Cowen tells his 748,000 YouTube subscribers that the 200-day simple moving average (SMA) is an accurate indicator of future BTC prices, citing 2018 chart data as a previous example.

“Everyone has a plan until you are rejected by the 200-day moving average.

We failed to set a higher low after rejecting the 200-day moving average. What came after that? A lower low, the same thing that happened here in 2018.

What has historically happened since you entered your first low point is that you get a relief rally back to the 200-day moving average, or back to the uptrend line that we previously held as support. “

Source: Benjamin Cowen / YouTube

Cowen then points out two potential price points on SMA, namely $ 41,700 and $ 40,000, which he believes are crucial levels for BTC to hold.

“Today, the 200-day SMA comes in at around $ 41,700, but it is moving down relatively fast. If we were to doubtfully extrapolate this out … you can see that in mid-June, the 200-day moving average could be close to $ 40. 000.

If we get an emergency call again, you will see the 200-day moving average, because there is a line in the sand that we have to get over. “

The analyst concludes his comments by saying that it may take several attempts for Bitcoin to break above the 200-day SMA price point, and since BTC is currently in a bear market, it is difficult to find exactly how and when the largest crypto asset by market value will rally again.

“One thing to remember, in 2018 we still saw the rejection of the 200-day SMA maybe twice, but you can argue a third time … maybe not really, but we almost got to it, and then we finally got over it on the fourth real attempt.

Maybe we’ll get a new one in the next few weeks. If so, be prepared for the 200th day. I said this back in March, said we’re in a bear market, do not assume we’ll just get over the bull market support band and keep it on support just because we did it last time.

200-day held as resistance a few months ago could hold as resistance again. We do not say that it must. “

The Bull market support band is a technical indicator that combines BTC’s 20-week SMA and 21-week exponential moving average (EMA).

Source: Benjamin Cowen / YouTube

At the time of writing, Bitcoin has recovered its losses after a sudden fall on June 6 sent it below $ 30,000.

BTC is currently trading at $ 31,366.

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