U.Today – Crypto analyst Benjamin Cowen suggests it may have just avoided a major decline. According to Cowen’s latest analysis, Bitcoin closed the weekly candle slightly above the critical bullish support band, even though it briefly fell below it. The bullish support band is widely considered to be a key threshold that determines whether Bitcoin is in a bear or bull market.
According to Cowen’s forecasts, Bitcoin is likely to avoid a more significant pullback as long as it remains above this band. The 20-week plain moving average (SMA) and 21-week exponential moving average form a bullish support band, which is an vital level that represents overall market sentiment.
During previous bull markets, Bitcoin has often bounced from this area, indicating that the correction has ended and additional upside momentum is likely to come. There are reasons for caution in interpreting Cowen’s optimism, however. Bitcoin has shown volatility in this band before; Wicks below these levels often cause investors to experience brief panic attacks.
Recovering the band is a positive development for Bitcoin, but it does not necessarily mean a quick rebound. Given the macroeconomic unpredictability and relatively low trading volume in the current market, it is possible that Bitcoin will encounter resistance in the coming weeks. Moreover, as recent price action has shown, Bitcoin is still stuck in a certain range and has not been able to break significant psychological barriers such as $65,000.
Another risk that may impact risky assets, including cryptocurrencies, is the possibility of the Federal Reserve tightening monetary policy. In summary, although Benjamin Cowen’s forecast represents an bullish view, based on past performance around the bullish support band, caution should be exercised.
For the rally to be more compelling, Bitcoin needs to maintain its current position above the support band while the market continues to face external pressures.
