Benjamin Cowen Looks Into Bitcoin, Draws Correlation To Stock Market

Benjamin Cowen, a top crypto analyst, is examining historical Bitcoin (BTC) trends and the US stock market to better understand when the leading crypto could build up positive momentum again.

In a recent video update, the market strategist shared with the 705K subscribers to his YouTube channel that rapid Bitcoin crashes such as the latest one, can’t be expected to turned back overnight.

“You should assume, based on history, anytime Bitcoin’s closing below the bull market support band, you should just assume that it’s going to be a few months before we can realistically have a shot at getting back above it…

I would say three to six months is usually a realistic timeline on actually having a shot to get back above it… We have below it for about nine weeks. We are currently in our ninth week, so a realistic time frame for getting back to the top, the conservative estimate would be three weeks… And that would basically be a best-case scenario.”

Cowen mentions the bull market support band, which refers to a market indicator derived from the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA). At the time of writing the bull market support band is between $47,000 and $51,000.

According to the analyst his best-case scenario for Bitcoin could happen, if the US equity markets rally for an extended period of time.

“What we would assume for that to happen, we’d have to see stocks be green for a few weeks. As much as we like to think that we live in a bubble where crypto does its own thing, it’s not true.

If we see the Nasdaq and the S&P continue to drop, rest assured that Bitcoin will also very likely drop as well. And it doesn’t necessarily mean there’s anything wrong with Bitcoin. Nothing’s changed fundamentally, but it might just mean that people are continuing to shift to be a little bit more risk-off rather than risk-on…

It’s not just Bitcoin. It’s everything that’s not cash.“