According to cryptocurrency analyst Benjamin Cowen, the largest cryptocurrency by market cap, Bitcoin (BTC) follows a specific market structure as of 2018. Cowen said that in January of 2018, Bitcoin exhibited higher lows between $9,000 and $11,000.
Cowen quotes important levels for Bitcoin
Cowen, a well-known analyst, as we reported on Kriptokoin.com, states that Bitcoin finally formed a crater and reached a new low of around $ 5,800 at that time. “As you can see in 2018, we’ve had a dip, we’ve had a drop higher and we’ve had this, which is a pathetic attempt at a higher low. Ultimately we are back to a lower bearish and trendline. It was also the rejection of the 200-day simple moving average (SMA) in between,” he said.
According to Cowen, Bitcoin has been reflecting the 2018 market structure for the past few months. He highlighted that BTC made several high lows between $30,000 and $39,000 from January to May and eventually corrected up to $26,000. The cryptocurrency trader adds that if BTC really follows the fractal, Bitcoin could be in a strong rally. Cowen adds the following to his analysis:
WHAT HAPPENED IN 2018 IS BACK TO THE RESISTING TREND LINE BECAUSE THE TREND LINES TENDENCY TO RESIST IN BEAR MARKETS. WE ALSO RETURNED TO THE 200-DAY MOVING AVERAGE, SO THERE WAS SOME CONNECTION BETWEEN THE TREND LINE AND THE 200-DAY SMA WE PUT AT THE HIGHER LOWERS.
Cowen: $40,000 can be seen again
Cowen thinks that if the current 200-day moving average were hypothetically extended into mid-June, it could likely reach somewhere between $40,000 and $42,000. The analyst states that the level between $40,000 and $42,000 carries a lot of weight for BTC. Because he states that 2021 is the place where the first rejection was defeated in January. He states that once this level is broken, BTC was rejected in the summer of 2021. He states that if the fractal materializes, in the next few weeks, there may be a pump and a return to $ 40,000.