Benjamin Cowen Projects Bitcoin To Break Global Market Correlation
A leading crypto analyst Benjamin Cowen is looking into how the stock market will effect on Bitcoin (BTC) price going forward, as BTC looks to be breaking correlation with global markets.
In a recent video update, the analyst shared with the 716K subscribers on his YouTube channel that he anticipates the stock market to largely affect crypto market prices, however there is a new development that “looks pretty good for Bitcoin.”
“One of the things that I think will probably dictate what crypto does to some extent is the stock market. What are the S&P and Nasdaq doing? What’s interesting to me is that the Nasdaq put in a lower low, but Bitcoin did not.
I think that looks pretty good for Bitcoin.”
The analyst says that by keeping an eye on the performance of Bitcoin relative to the bull market support band, crypto investors could get signals for altcoins rallies.
At the moment Bitcoin bull market support band is around $47,000, while BTC is price at $43,970.
“The reason I care about it is because we know that the altcoin market behaves differently when we’re above it or below it. It doesn’t matter where it is, is the thing.
When Bitcoin was above it back in the summer of 2020, a lot of people made a lot of money. We were watching all sorts of altcoins just go flying off the rails.
People still made a lot of money even though Bitcoin was only $10,000. Why? Because it was above the bull market support band. When it’s below it, not a lot of altcoins did much.”
Cowen dives into the correlation between Bitcoin and Nasdaq, and projects BTC to outperform the Nasdaq in the coming weeks.
“Bitcoin goes through these bullish phases against the Nasdaq as well as bearish phases.
Right now, we’re sort of at the bottom of this line, so hopefully, we’ll come back up to the top.”
Another indicator that Cowen uses is the Bitcoin’s bull market support band, an indicator that combines BTC’s 20-week simple moving average (SMA) and 21-week exponential moving average (EMA).
