Key Points:
- Three significant technical indications are converging at a crucial price level for Bitcoin.
- the 50-week moving average is falling while the 200-week moving average is rising, and both are moving in the same direction.
- The convergence point is similar to the conditions of 2019, which saw an explosive rally past the $6,000 price level.
According to widely respected crypto expert Benjamin Cowen, Bitcoin (BTC) is preparing for a probable trend shift that might result in an enormous rally akin to the one in 2019.
Cowen informs crypto-conscious people in a new strategy session that three significant technical indications are converging at a crucial price level for Bitcoin.
Cowen claims that the 50-week moving average is falling while the 200-week moving average is rising, and both are moving in the same direction. The two moving averages appear to be headed for a collision near BTC’s latest high of roughly $25,000.
You have the 50-week [average] coming down. You have the 200-week [average] going up. And then you have the price rallying on up to it. You also have the prior local top at $25,200. And look at this local top: right in between those two moving averages. It’s almost too perfect that they’re all converging to the same level.
Cowen compares the current situation to the conditions in 2019, which saw an accelerated rise past the $6,000 price level, despite many forecasting that the price would act as resistance.
According to Cowen, traders are keeping a careful eye on the $25,000 price level since it may suggest whether the Bitcoin rise has more gas in the tank.
I imagine [breaking $25,000] will be a battle. With that said… there were a lot of people over here [in 2019] that said $6,000 is going to take a long time to break. They said, ‘We’re going to come back down, and it’s going to take forever to break it.’ And we just sliced through it like it wasn’t even there. Okay, so momentum is a powerful thing.
At the time of writing, Bitcoin is trading at $23,104.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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