Common crypto analyst Benjamin Cowen says one easy indicator with a historical past of calling Bitcoin bottoms is near doing so once more.
In a brand new technique session, Cowen takes a have a look at the 20-week and 100-week easy transferring common (SMA) combo on Bitcoin.
With each SMAs near converging, Cowen factors out that they’ve solely ever crossed twice in Bitcoin historical past, each instances marking the underside of a BTC correction.
“There are two instances in historical past, solely two instances, the place the 20-week SMA crossed under the 100-week… and also you may surprise, why does this matter, who actually cares, they’re simply transferring averages, they’re lagging indicators blah blah blah. However allow us to look to see, was there any significance to the crossing of those two transferring averages?”
Whereas Cowen says the crossing of those two transferring averages has at all times marked the underside, it could possibly additionally coincide with an additional downward capitulation, which he has warned of earlier than. Ought to the transferring averages cross, he says that it will in all probability occur someday late subsequent month or early July.
“And so the query is, will the 20-week cross under the 10-week? If it does, traditionally talking that really ended up marking the underside even when it was one other 40% drop or one thing, however that’s what traditionally ended up marking the underside, at the least it on this method. Now, are they going to cross anytime quickly?
Effectively, not in Might, it’s greater than seemingly not going to occur in Might, it’s in all probability going to be a little bit little bit of time right here earlier than they really cross. If we had been to extrapolate the present development, let’s suppose they preserve transferring on the similar fee they’re, then it will occur in late June, or perhaps early July.”
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