Crypto analyst Benjamin Cowen has predicted that while the overall trend remains bearish for Bitcoin BTC/USD, brief moments of bullishness may still occur.
What Happened: In a YouTube video, Cowen discussed the recent death cross formation in the Bitcoin market. "Typical death cross rally has materialized," he said on Twitter.
The formation of a death cross in Bitcoin’s market occurs when the 50-day moving average, a short-term trend indicator, crosses below the 200-day moving average, a long-term trend indicator. Traders and technical analysts often view this pattern as a bearish signal. It suggests a potential shift in the overall trend of Bitcoin’s price, signaling the possibility of further downward movement or a prolonged period of price decline.
Despite the bearish signal, Cowen believes that Bitcoin may experience intermittent rallies.
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Why It Matters: Cowen outlined three potential scenarios that could unfold following the recent “death cross rally.” The first scenario suggests Bitcoin might consolidate around the current level of approximately $26,700 before declining further, potentially dropping below $24,500.
The second scenario envisions Bitcoin rising to the 50-day moving average, a level seen during a previous rally above $27,500. Cowen approximated this range to be around $27,600 to $27,700 before a subsequent decline.
According to Cowen, the third and more optimistic scenario involves Bitcoin surging back to a position just below the recent breakdown point of around $29,200, following which it would eventually fade back down.
“All three of those scenarios, I think, are possibilities,” Cowen emphasized.
In a separate tweet on Tuesday, Cowen added, "While BTC likes to rally when the death cross hits, remember that the rally typically leads to lower highs."
Photo by Vladimka production on Shutterstock
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