The popular cryptanalyst Benjamin Cowen says that a simple indicator in the past Bitcoin– called lows is about to do so again.
In a new strategy session, Cowen takes a look at the 20-week and 100-week Bitcoin simple moving average (SMA) combo.
With both SMAs on the verge of convergence, Cowen points out that they have only crossed twice in Bitcoin’s history, both times marking the bottom of a BTCcorrection marked.
“There have been two times in history, only two times, where the 20-week SMA has broken below the 100-week SMA… and you may be wondering why that matters, who really cares, they’re just moving averages , they lag behind indicators blah blah blah. But let’s see if the crossing of these two moving averages had any meaning?
Credit: Benjamin Cowen/YouTube
While Cowen says the crossing of these two moving averages has always marked the bottom, it may also coincide with another downside capitulation that he previously warned about. Should the moving averages cross, he says it would likely happen sometime late next month or early July.
“So the question is, will 20 weeks drop below 10 weeks? If so, that did indeed mark the bottom historically, even if it was another drop of 40% or so, but that’s what marked the bottom historically, at least if you look at it that way. Well, will they cross any time soon?
Well not in May, it most likely won’t happen in May, it will probably take a bit here before they actually cross. If we were to extrapolate the current trend, assuming they are moving at the same rate as they have been so far, then it would happen in late June or maybe early July.”
Check the price action
Source: Crypto News Deutsch