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Cryptocurrency analyst and strategist Benjamin Cowen has made a worrying prediction that Bitcoin (BTC) will continue its downtrend for months after retesting a significant price range. Cowen believes that Bitcoin will move upward in the short term to test the support band of the bull market, but after this rise, it will enter a larger downtrend. According to the analyst, the bull market support band is currently formed by the 20-week simple moving average (SMA) at $27,888 and the 21-week exponential moving average (EMA) at $27,227. Cowen explained this formation as follows:
Most bulls do not have to believe that everything is over. Why should they? Technically, a lower low has not been recorded yet. So, there is a reason for them to believe that the rise will continue. However, I still think that this low level will be recorded.
The bulls are giving it another chance to see if they can break the support band. If they spend one or two weeks around this support band and there is no expected breakthrough, then the more likely scenario is that the price will retreat, record a lower low (around $22,890), and then repeat.
Looking at the Bitcoin chart shared by Cowen, it can be seen that he expects a move towards the $28,000 level before the downtrend continues and the price drops below $20,000.
Confirmation of the Bullish Trend in Bitcoin
On the other hand, Cowen added that Bitcoin could break the support band and start a sustainable bull market, which could lead to much higher prices for the largest cryptocurrency. The analyst stated that for Bitcoin to confirm a general uptrend and surpass the bull market support band, it needs to convincingly stay above this band, saying:
I think it is more likely to see the price pull back from the bull market support band in the short term. However, if we move above this band, there need to be multiple weekly candle closes above this band for it to really mean something, and that’s the difficult part.
