Benjamin Cowen Updates Outlook on BTC, Says Bitcoin Will Be ‘in a Downtrend for the Rest of the Year’
There’s a mounting probability that Bitcoin (#BTC) will soon breach its previous low of $24,800 according to the founder of ITC Crypto, Benjamin Cowen. Market indicators and trading volumes suggest that this low is not just a statistical anomaly but a real possibility in the near term.
The Death Cross and the Relief Rally
Interestingly, after plummeting to this new low, Bitcoin could experience what traders often refer to as a “relief rally.” This is a temporary rebound where the asset’s price increases for a short period. The rally is likely to coincide with a technical indicator known as the “death cross,” a bearish signal that occurs when the 50-day moving average crosses below the 200-day moving average.
However, investors should exercise caution. Any such relief rally is expected to be ephemeral, leading to what are known as “lower highs” in trading parlance. In simpler terms, each subsequent peak in the asset’s price will be lower than the last, indicating a lack of buying pressure and waning investor confidence.
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Show more +Taking a step back and looking at the broader picture, all signs point to Bitcoin being in a downtrend for the foreseeable future, potentially lasting through the end of the year. Various macroeconomic factors, such as inflation rates and regulatory scrutiny, could further exacerbate this downward trajectory.
In conclusion, while short-term gains may tempt some investors, the overall outlook for Bitcoin remains bearish. As always, it’s crucial for investors to do their own research and consider their risk tolerance before making any investment decisions.
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