- Benjamin Cowen has predicted a Bitcoin price rally, the analyst argues that the asset could rebound to the $40,000 level.
- Cowen believes the 200-day simple moving average is an effective indicator for predicting a Bitcoin price rally.
- Analysts evaluated the possibility of Bitcoin price rebounding from the 200-day moving average.
Bitcoin price could rebound from its recent slump and make a comeback assuming it does not get rejected at a key level, Benjamin Cowen, a leading analyst with a bullish outlook on Bitcoin price, has said.
Bitcoin price could climb to 200-day moving average level
Benjamin Cowen, CEO of Into The Cryptoverse and a leading cryptocurrency analyst recently told his 748,000 YouTube subscribers that Bitcoin price could recover from its recent drop. The analyst has identified the 200-day simple moving average (SMA) as an effective indicator of Bitcoin’s price trend.
Cowen argues that when Bitcoin price breaks below its 200-day moving average it doesn’t necessarily mean it will enter a protracted bear trend. Normally there is a relief rally back up to the 200 SMA which it then breaks above and carries on climbing. It is only on those occasions when it retests the SMA and gets rejected that it continues falling.
Bitcoin price continues to hold bullish potential, therefore, according to Cowen who expects Bitcoin’s price to return to the level of the SMA at $41,700. He also sees $40,000 as a significant level and critical milestone for Bitcoin.
By mid-June 2022, the analyst expects Bitcoin price to make a comeback to the $40,000 level. Soon after it should reach the 200-day moving average which is at about $41,700, but it is falling swiftly.
BTC-USD price chart
Two key Bitcoin price levels, 50-week and 200-week moving averages
Rekt Capital, a pseudonymous cryptocurrency analyst has identified two key levels for Bitcoin price. The analyst has identified a curious relationship between the 50-week EMA (blue) and 200-week MA (orange).
BTC-USD price chart
Rekt argues that after the BTC price has broken below its 50 WEMA and then retested the EMA but failed to break above it again, it usually marks the beginning of a sell-off down to the 200 WEMA. At that level, however, it eventually finds a floor and begins a new bull run.
Historically, this has happened on three previous occasions and this year could be the fourth instance of that phenomenon. In 2015, Bitcoin price was rejected from the 50-week EMA and rebounded from the 200-week moving average. The first attempt to rebound was a solid one, however a macro price reversal followed.
The second instance was in 2018-19 when Bitcoin price witnessed a lengthy consolidation period after getting rejected from the 50-week EMA. Bitcoin rebounded and retested the 200-week moving average before starting a new bull run.
Similar to previous years, in 2020 Bitcoin price tested the 50-week exponential moving average before lifting off into a bull run.
Much like previous years, in 2022 Bitcoin price consolidated below the 50 WEMA and then crashed towards the 200-week moving average. Based on the repetitive or cyclical nature of the Bitcoin price trend, the same pattern could repeat itself and the analyst argues the asset could begin a bull run soon.
FXStreet analysts have identified an upcoming price rally in Tron and predicted an explosive breakout in the altcoin.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.