Crypto analyst Benjamin Cowen is looking at the possibility that Bitcoin (BTC) just formed a massive double top, which is a bearish pattern that often signals the beginning of a downtrend.
In a new strategy session, Cowen says that rather than a double top pattern, the king crypto appears to be turning a previously hard resistance level into support.
“I don’t consider it to be a double top. What I would say is that we are very likely building out macro-level support. What I mean by that is if we look at, say the weekly time frame, what you’ll notice is that this area here ($60,000) that we previously held as resistance earlier this year… That area that we held as resistance for months is now becoming support. That’s what I see.”
Cowen also says that with all the volume around the $60,000 range, it may end up being the level where the next bear market bottoms out when it comes around.
“I do think there is a decent chance in the future that the current prices could be around the next bear market bottom. It could be lower than we are today, it could be a little bit higher, but I would say around the current prices could be the next bear market bottom. I don’t think Bitcoin is going to $20,000. I don’t think it’s going to $30,000.
If you had to ask me what is the floor for Bitcoin, I would probably just base it off the 20-week [moving average]…”
The 20-week simple moving average (SMA) combines with the 21-week exponential moving average (EMA) to create what Cowen calls the “bull market support band.” The 20-week SMA is currently roughly at $47,000 and slowly moving up each day.
Cowen says that Bitcoin may be in the process of forming a long-term macro-level support level which could end up being the “absolute fear” price area in the years to come.
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