Analyst Predicts That Rising Price Data May Be Cause Of BTC’S Next Crash

According to well-known cryptocurrency researcher Benjamin Cowen, forthcoming inflation statistics may have a significant impact on the course of Bitcoin (BTC).

The expert explains to his 771,000 followers in a new video that interest in Bitcoin will probably return if its price breaks through the bull market support band.

The 21-week exponential moving average (EMA) and the 20-week simple moving average are combined to form the bull market support band (SMA).

“I want to draw your attention to the logarithmic regression channel. We are near the bottom of it. It was fit a long time ago. We are coming up to the bull market support band. If we break above it, there will likely be a lot of people FOMOing (fear of missing out) back into the market.”

According to Cowen, the Federal Reserve’s increased hawkishness and next week’s soaring consumer price index data (CPI) might cause BTC to fall further rather than rise. In this case, he aims for the $14,000 mark.

“If we get rejected by it, if Powell comes out and is super hawkish or something, which could happen. Core CPI is at new highs. It’s higher today than it was for the entire year so if core CPI comes out and it continues to come in hot and the Fed continues to provide us with oversized interest rate hikes, then you could see a lower low sooner rather than later and then we try to work our way out of it into the next bull cycle.”

Even if Bitcoin is headed for another leg down, Cowen maintains that BTC trading anywhere in the $20,000 area is a fantastic deal for long-term bulls.

“As I’ve said, long-term value, I think [is] around $20,000. I think it is going to provide a lot of long-term value for Bitcoin. Is it going to give you the best price in the short term? It’s hard to say. Short-term moves are very difficult to predict, at least for me they are. But I do think around these prices over the macro scale is is still going to be a relatively attractive price.”