One well-known cryptocurrency analyst believes that Bitcoin (Bitcoin) The price is heading much lower based on one major indicator.
In a new market update, Benjamin Quinn He tells told his 993,000 YouTube subscribers that Bitcoin is still in a bear market after hitting resistance at the 200-day simple moving average (SMA).
Cowen says the 200-day SMA is an accurate indicator of future Bitcoin prices, pointing to 2018 and 2022 as past examples when Bitcoin reached the 200-day SMA and then collapsed.
Cowen outlines two possible bearish scenarios for Bitcoin that could occur in the coming months based on historical precedence.
“Rejection from the 200-day level: The most bearish view is that it comes down in May, holds there for a while, sells off in June, and then sweeps low in February like it did at the end of 2018. From there, you could have a counter-trend to the rally in July and August, before it then goes down in October, and then marks the bottom of the market cycle.”
Looking at his chart, Cowen suggests that Bitcoin will bottom at around $46,000.
In the other bearish scenario, Cowen says Bitcoin will make another big rally to the $80,000 range before bottoming out.
“You can see that we always identify this .382 level (Fibonacci retracement level) before you get that final decline…before actually selling at the end of a bear market…
Thus there is another path that would call for Bitcoin to fall in June. I took it all back, and then the price went back to the highs (about $87,000). I was flooded with people again, and then I sold in the fourth quarter.
Bitcoin is trading for $76,861 at the time of writing, a flat price during the day.
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