Bitcoin Mid-Cycle Prime? Benjamin Cowen Says One Indicator Suggesting BTC Headed for Downtrend

0
29


Well-liked crypto analyst Benjamin Cowen says that one indicator suggests Bitcoin (BTC) could also be getting into a downtrend.

In a brand new technique session, Cowen tells his 789,000 YouTube subscribers that the extension from the 20-week easy shifting common (SMA) is flashing bearishness for Bitcoin.

In keeping with Cowen, the indicator reveals Bitcoin might have reached a mid-cycle high.

“The final three highs, the final three tops that a minimum of marked a neighborhood high for some time occurred across the time that the extension from the 20-week [SMA] reached this stage [of about 40%]. So I nonetheless contend it’s an essential stage to take a look at.”

Supply: Benjamin Cowen/YouTube

Zooming out, the analyst says that Bitcoin tends to print cycle tops when the extension from the 20-week SMA touches its diagonal resistance.

The analyst shares a chart that reveals BTC hit a mid-cycle high in 2019 when the indicator bought near its diagonal resistance. Cowen says that historical past might repeat itself because the extension from the 20-week SMA is presently hovering near the long-term diagonal resistance.

“Now on a longer-term timeframe, one of many issues I like about this chart is that the extension from the 20-week SMA whenever you’re in peak bull mania mode tends to have this diminishing volatility facet to it, whereby the primary cycle the extension from the 20-week SMA was much more important. However as we go from one cycle to a different, the extension isn’t as nice. Now it form of raises the query, nicely, will we hit it once more this cycle?

It’s potential, however you’ll be able to see that in 2019 a mid-cycle high worth didn’t hit it. We bought considerably shut, however we didn’t even hit it. And actually, that extension is nicely above the place we even presently are. You’ll be able to see that the height extensions, when they’re hit, are inclined to correspond to way more important tops, like all-time excessive tops for a very long time. It raises the query is that this high right here [around June 2019] or is that this one right here [in January 2024] a mid-cycle high?”

Supply: Benjamin Cowen/YouTube

Bitcoin is buying and selling for $39,365 at time of writing, down barely within the final 24 hours.

I

Do not Miss a Beat – Subscribe to get e-mail alerts delivered on to your inbox

Test Worth Motion

Observe us on Twitter, Fb and Telegram

Surf The Each day Hodl Combine

Test Newest Information Headlines

&nbsp

Disclaimer: Opinions expressed at The Each day Hodl usually are not funding recommendation. Traders ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital property. Please be suggested that your transfers and trades are at your personal danger, and any loses it’s possible you’ll incur are your duty. The Each day Hodl doesn’t advocate the shopping for or promoting of any cryptocurrencies or digital property, neither is The Each day Hodl an funding advisor. Please observe that The Each day Hodl participates in internet online affiliate marketing.

Generated Picture: Midjourney



LEAVE A REPLY

Please enter your comment!
Please enter your name here