Prominent cryptocurrency analyst Benjamin Cowen foresees an impending “death cross” for Bitcoin BTC/USD, offering insights that challenge common misconceptions about this technical indicator.
What Happened: In his latest podcast update, Cowen points out that a death cross occurs when the 50-day Simple Moving Average (SMA) crosses below the 200-day SMA. He emphasizes that unlike its name this event often leads to a short-term rally rather than a decline. Cowen noted that this pattern is observed in earlier market cycles.
The analyst points to historical examples, including the 2023 death cross, where Bitcoin experienced a significant upward movement following the event. Cowen also draws parallels to the 2019 market cycle, which matches the recent pattern of lower highs and lower lows.
Looking ahead, Cowen advises investors to watch the 50-day SMA, currently around $62,000, as a key level for Bitcoin’s next moves. He outlines possible scenarios, including a rally above this level followed by either sustained support or rejection, which could indicate different market trajectories.
Also Read: Bitcoin’s Bullish Prospects: Fed Cuts, Strategic Reserve And A 2020 Deja-Vu
Why It Matters: Benjamin Cowen reminded traders that September has historically been a challenging month for Bitcoin. He encourages a rational, level-headed approach to market analysis, emphasizing the importance of considering broader economic factors alongside technical indicators.
Cowen concluded that although the death cross will trigger short-term bullish movement, long-term trends will depend on macroeconomic factors and market dynamics beyond the crypto sphere.
Price Action: In the past 24 hours, BTC is trading around 1% higher breaking the $60,000 mark.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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