Benjamin Cowen Looks Into Bitcoin And Draws Support Level Scenarios

Benjamin Cowen, a leading cryptocurrency analyst, is looking into Bitcoin, and how the recent charts could be interpreted amid the possibility that BTC just formed a massive double top – a bearish pattern that often signals the starting of a price descend.

In a recent video, Cowen shared with his 610K YouTube subscribers that instead of a double top pattern, Bitcoin chart looks to be converting a previously hard resistance level into support.

“I don’t consider it to be a double top. What I would say is that we are very likely building out macro-level support. What I mean by that is if we look at, say the weekly time frame, what you’ll notice is that this area here ($60,000) that we previously held as resistance earlier this year… That area that we held as resistance for months is now becoming support. That’s what I see.”

The analyst says that looking at the volume around the $60K range, it could end up being the level where the next bear market bottoms out when eventually happens.

“I do think there is a decent chance in the future that the current prices could be around the next bear market bottom. It could be lower than we are today, it could be a little bit higher, but I would say around the current prices could be the next bear market bottom. I don’t think Bitcoin is going to $20,000. I don’t think it’s going to $30,000. 

If you had to ask me what is the floor for Bitcoin, I would probably just base it off the 20-week [moving average]…”

According to Cowen, the 20-week simple moving average (SMA) together with the 21-week exponential moving average (EMA) forms the “bull market support band.” The 20-week SMA is currently roughly at $47,000, but climbing up each day.

The analyst points out that Bitcoin could currently be in the process of forming a long-term macro-level support level, which could become the “absolute fear” price area in several years to come.