Bitcoin Tests Key Bull Market Support At $88,000: What Does Technical Analysis Say?

Cryptocurrency analyst Benjamin Cowen has identified Bitcoin's BTC/USD approach to the bull market support band as a key inflection point that could decide its trend for the coming months.

What Happened: In a podcast published on Monday, Cowen explained that this support zone, currently ranging between $88,400 and $95,000, aligns with the 21-week exponential moving average and 20-week simple moving average—technical levels that historically dictate Bitcoin's momentum.

He noted that Bitcoin's 30% correction is still within normal bull market parameters.

Bitcoin often bounces back to this support band after corrections, similar to previous cycles.

However, initial rejections at this level are common, with BTC attempting a breakout later—as seen in 2019 and 2023. "Sometimes, on the first approach, there can be a rejection before another attempt," he warned.

Comparing Bitcoin’s current correction to historical patterns, Cowen noted it remains within normal parameters for bull markets. "30% is still a reasonable correction. We had plenty of those even in 2017," he explained, adding that the drop in early 2017 that tested the previous yearly high was approximately 35%.

Also Read: Bitcoin Could Replace Tesla In ‘Magnificent 7’ To Boost Returns, Reduce Volatility: Standard Chartered

What's Next: For the broader market outlook, Cowen identified early to mid-April as the next potential period of concern when new macroeconomic data is released.

While acknowledging President Trump has "slowed down the rhetoric" on April 2 tariffs, he suggested these upcoming economic reports could influence whether Bitcoin successfully breaks through the bull market support band or experiences another rejection.

Regarding altcoins, Cowen maintained his view that "Bitcoin should still outperform most of the rest of the market," providing "exposure to the upside" while minimizing downside risk.

He predicted Bitcoin dominance would "continue to slowly trend higher" as Bitcoin potentially uses "liquidity from the altcoin market to hopefully sustain itself for longer."

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