Bitcoin prices went down in the last two days after spot ETFs got approved. The prices kept going down, and today they went a bit below $43,000. What caused this drop in the Bitcoin market? Bitcoin expert Benjamin Cowen shared some thoughts about where the cryptocurrency market might be headed. He mainly focused on the idea that the price of Bitcoin could go down for a bit.
Cowen explained that he looks at certain lines on a chart to figure out what might happen next. One line is called the 20-week Simple Moving Average, and another is the 21-week Exponential Moving Average. These lines help him see trends in the market.
Currently, these lines suggest that Bitcoin might face a challenge around the $36,000 mark. Cowen pointed out that historically, around mid-January, the price of Bitcoin tends to go through a bit of a correction or drop.
He mentioned that predicting exact prices is tough, but he said it’s crucial to keep an eye on a level around $42,000. Cowen reminded viewers that predicting short-term price action is challenging but suggested monitoring the 20-week SMA, which sits at $42,000. A weekly close below this level could increase the likelihood of revisiting the bull market support band.
Cowen shared some historical examples to show that Bitcoin has gone through similar patterns before. He talked about the possibility of a slow rise in price followed by a dip, similar to what happened in the past.
The video also touched on something called logarithmic regression bands, which are fancy words for more lines on a chart. According to Cowen, Bitcoin is getting close to a level that could be important, so he suggested being cautious about a possible drop in price.
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