Bitcoin (BTC) May Be Due for Significant Correction As Technical Indicators Overextend: Benjamin Cowen

A extensively adopted crypto analyst warns that Bitcoin (BTC) might out of the blue bear a large correction.

In a brand new technique session, Benjamin Cowen tells Its 850,000 YouTube subscribers point out that the extension of the 20-week easy transferring common (SMA) is a bearish pattern for Bitcoin.

“When you have a look at the near-term bubble danger, which can also be simply the extension of the 20-week transferring common, you may see that it is in that vary the place you will discover a few of these corrections the place Bitcoin comes again all the way down to earth the bottom comes. .”

The analyst says a correction might ship Bitcoin again to the bull market’s help band, which is fashioned by the 20-week SMA and the 21-week exponential transferring common (EMA). The band at present covers the vary between $72,000 and $80,000.

“There’s a probability you may see Bitcoin fall all the way in which again to the bull market help band. However keep in mind final time it simply consolidated and waited for the 20 week SMA to catch up. In order that can also be an answer.”

Cowen additionally suggests {that a} Bitcoin correction might be extra extreme than many count on, doubtlessly retesting a trendline that may ship BTC into the $60,000 vary.

“I additionally wish to put one doable end result in your radar in case that occurs, and that’s principally retesting this pattern line. We have seen that sample occur loads with alt/Bitcoin pairs and different random valuations, the place you see some form of breakout after which a backtest, after which it continues. There’s all the time an opportunity one thing like this might occur…

That is principally what occurred this previous cycle. You really had a form of decrease, excessive construction. Ultimately you had a breakout, adopted by a serious relapse…

You’ll be able to see one thing related taking place right here [in 2022-2023]there have been a number of decrease highs that Bitcoin had after which broke out, was right here for some time, examined it after which went up…

There’s a probability you may see one thing like this occur, the place Bitcoin may even spend extra time right here and perhaps even set a brand new all-time excessive, however it will possibly all the time backtest this trendline finally.”

Bitcoin is buying and selling at $98,610 on the time of writing, up 5.8% up to now 24 hours.

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