Bitcoin’s Market Outlook

Cryptocurrency analyst Benjamin Cowen suggests that Bitcoin may have just avoided a major decline. According to Cowen’s latest analysis, Bitcoin closed the weekly candle marginally above the critical bull market support band, even though it had briefly fallen below it. The bull market support band is commonly regarded as a crucial threshold that establishes whether Bitcoin is in a bearish or bullish phase.

Current Analysis

According to Cowen’s outlook, Bitcoin is likely to avoid a more significant retracement as long as it stays above this band. The bull market support band consists of the 20-week simple moving average (SMA) and the 21-week exponential moving average, representing overall market sentiment.

Throughout past bull runs, Bitcoin has frequently rebounded from this support area, indicating that previous corrections have completed and additional upward momentum may be ahead. However, caution is warranted when interpreting Cowen’s optimism. Bitcoin has previously exhibited volatility within this band; dips below these levels often induce brief panic among traders.

Future Considerations

Regaining the support band is a positive development for Bitcoin, but it does not guarantee a quick rebound. Given the macroeconomic unpredictability and comparatively low trading volume in the current market, Bitcoin may face resistance in the upcoming weeks. Moreover, recent price actions indicate that Bitcoin remains within a range and struggles to surpass significant psychological levels like $65,000.

A further risk to risk assets, including cryptocurrencies, may arise from the Federal Reserve tightening its monetary policy. In summary, while Benjamin Cowen’s forecast presents a bullish viewpoint based on past performance near the bull market support band, caution remains essential.

For a more convincing rally, Bitcoin must maintain its position above the support band while the market experiences external pressures.

This article was originally published on U.Today