In a new strategy session, Cowen examines the “death cross,” or the fall of BTC’s 50-day moving average below the 200-day moving average. The event is generally viewed by many traders as a bearish indicator.
The closely watched analyst reminds his 465,000 followers that moving averages are lagging indicators that often tell us what we already know.
“Do we have to tell you that things have been bearish lately? No, you don’t.
Cowen, who has previously put forward the idea of lengthening bull cycles for Bitcoin, said an extended period of consolidation and allocation is in store for the flagship crypto asset. The analyst says he believes BTC will hit $ 100,000, but that it will take longer to hit that price target than many anticipate.
“I would say Bitcoin, as we have discussed on several occasions, is most likely in a much longer cycle than most realize. Therefore, it’s also likely that most people will underestimate periods of consolidation the same way we spent six months consolidating in 2019 after the move to $ 14,000. While you can safely say this was a fake bull run, we still spent some time consolidating before going up.
Cowen says that now that the Death Cross is almost over, one positive thing Bitcoin bulls can look forward to is a potential ‘golden cross’ or the breaking of the 50-day moving average above the 200 week moving average, which is considered a very bullish signal by many traders.
“One good thing about a cross of death is that the next thing you can maybe look forward to is a future golden cross. Now, I don’t know how long it will take… We know that historically, at least in recent years, it could take six months before exceeding 20 weeks [moving average] and then hold it as a support.
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Image en vedette : Shutterstock/Tithi Luadthong