A popular crypto analyst sets the bar for the multi-chain scaling solution Polygon (MATIC) even higher while the Cryptocurrency number one Bitcoin (BTC) drifts away.
In a new strategy session, Benjamin Cowen tells his 666,000 YouTube subscribers that Polygon’s daily values have been showing a clear upward trend since July and that the pricing mode may even be the leading Ethereum-Scaling solution hits new all-time highs.
“It can be argued that we are in this general upward trend and we are approaching pricing mode …
[It] is always interesting because with all these different prices you don’t necessarily have all the same types of walls. “
The analyst goes on to explain how investors behave differently when their crypto assets rise or fall.
“You could imagine that people who bought bitcoin for, say, $ 60k or $ 65k or $ 69k, when the cost base for the entire stack is there, some of them might just want to get out.
They just set their sales there and if one day it comes to those prices, they’ll be happy to get off. They don’t care about making even more profits, they rather simply reduce their losses and move on at a potentially lower price or breakeven point.
However, once you get into pricing mode and everyone who has bought this token for the full story is making a profit, as long as … if you buy locally you see it go up, everyone profits.
So you don’t see exactly the same type of walls. Now people will take profits at some point and you have the new bag holders that have to wait. “
Next, Cowen sets out the exact level he believes MATIC must reach in order to enter pricing mode.
“Let’s call it $ 2.79. $ 2.79 MATIC puts it in pricing mode. And nothing below. I’ve seen some people say we’re in pricing mode here [$2.53]… but you have to consider that MATIC actually climbed a little higher in May, before we had this big crash …
It’s interesting to see how it approaches new all-time highs, but I think what’s even more interesting is the fact that it did while Bitcoin was in a downtrend. That is extraordinary for me. “
Source: Benjamin Cowen / YouTube
The chart guru concludes his thoughts by highlighting the important contrast between recent Bitcoin highs and polygon lows.
“Despite everything that Bitcoin has been through in the last five weeks, MATIC is on an upward trend.
MATIC pushes higher and higher. And instead of making lower highs like Bitcoin did, it is instead making higher lows.
If Bitcoin came back down to $ 47,000 or so, for example, it wouldn’t be so crazy for MATIC to fall back on the trendline. Maybe you go all the way back to $ 2 potentially.
I’m not saying it’ll cost $ 2, but … we were at $ 1.80 a week ago. So let’s not pretend it can’t happen. If you actually look at the daytime closings, you can see that it looks much nicer. “
At the time of writing it is MATIC in 14th place increased by 5.71% to USD 2.57 over the course of the day. The altcoin would have to rebound another 8.56% to hit Cowen’s target of $ 2.79.
The leading crypto BTC remains unchanged on the day at $ 48,435.
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Source: Crypto News Deutsch