Benjamin Cowen: Strong USD Could Ruin The Bull Runs For Both BTC & ADA
According to Benjamin Cowen, a popular cryptocurrency analyst and trader and crypto analyst there is a threat that could thwart Cardano’s (ADA) and Bitcoin’s (BTC) bullish setup.
In a recent strategy session, Cowen shares with his nearly half million YouTube subscribers that ADA’s bullish sentiment continues to build as the third-largest cryptocurrency prints a fresh all-time high of $2.85. At the time of writing ADA is trading at $2.81.
“For now, I think a lot of the hype is two things. Number one is smart contracts launching in a few weeks. That’s number one. I think there’s a lot of hype building into that. Number two, Bitcoin’s above the 20-week [simple moving average] and going sideways. So the path of least resistance for ADA is to go up.”
Cowen argues that the next price explosion for Cardano hinges on Bitcoin’s (BTC) ability to stay above a key level, which actually is the case for many well-performing altcoins.
“The only thing now that you should be rooting for if you want to see ADA break through to say the $3 mark, the $4 mark, what do you want to see happen? What you want to see happen is you want to see Bitcoin just kind of hang out. Just have Bitcoin chill above the 20-week [simple moving average]. If we get it, then the path of least resistance for ADA is up.”
The analyst sees a threat that could possibly ruin the bullish rallies for both ADA and BTC.
“To understand what ADA’s doing, you need to go look at what Bitcoin’s doing. To get a better understanding of what Bitcoin’s doing, you need to go look at the US dollar. And the only reason, the only reason to be a little bit cautious, I would say, would be because the dollar is trying to break out…
If you want to see crypto move up, what you would like to see happen is you would like to see the dollar get rejected back down. So if the dollar gets rejected back down, then you’re going to see people continue to speculate on crypto…”
The trader is keeping an eye on the dollar “like a hawk.” It will be difficult for Bitcoin to record a new all-time high if the US dollar breaks out, says the analyst.
