Bitcoin Price May Experience Correction, Similar to 2019, According to Analyst
Popular crypto analyst Benjamin Cowen made a cautious statement on the current Bitcoin (BTC) price formation, suggesting that there are similarities to a previous case in 2019 that led to a market correction.
In a recent strategy session, Cowen discussed the potential impact of the 100-day simple moving average (SMA) on Bitcoin’s trajectory.
He points out that in 2019, BTC experienced a drop below the 100-day SMA when it failed to maintain support on initial contact. Now that Bitcoin is resting on the 100-day SMA again after an extended period, Cowen speculates that a similar situation could develop.
Given this outlook, the analyst ponders the possibility of Bitcoin returning to levels below the 100-day SMA in the near future, thus assessing the resilience of this move and its potential similarity to the 2019 correction.
Additionally, Cowen suggests that monitoring the 20-day SMA may offer insights into whether a market correction similar to 2019 will occur in 2023.
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In 2019, he notes that Bitcoin momentarily rose above the 20-day SMA after falling below the 100-day SMA, only to subsequently fall again. Currently, Bitcoin has risen above the 20-day SMA again, raising questions about its future trajectory.
Cowen further highlights an intriguing point of comparison between these periods: the crossing of the 20-day SMA below the 100-day SMA. While this crossover occurred during the 2019 rally and subsequent decline, it has not materialized in 2020, nor has it occurred in 2023 thus far. He remains uncertain about the likelihood of such an intersection occurring in the current year.
At the time of writing, Bitcoin is trading at $27,700 and has a trading volume of nearly $13.5 billion in the last 24 hours.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
