Widely followed crypto analyst Benjamin Cowen has alerted investors about the potential for further declines in Bitcoin (BTC) after it reached levels last seen in February. He shared key levels to watch in the largest cryptocurrency.
Focus on the 100-Day SMA
In his latest assessment video shared with YouTube subscribers, Cowen emphasized the importance of Bitcoin‘s position relative to its 100-day Simple Moving Average (SMA), stating that falling below this level could increase downward pressure on the cryptocurrency.
The analyst said, “In the short term, the thing to consider with Bitcoin will be the 100-day SMA because this is where we are now. We just swept these low levels at $60,000. So this will be the place I’ll be watching.”
Cowen highlighted the historical significance of the 100-day SMA as a crucial support level for Bitcoin’s price in previous instances, noting that maintaining this support could prevent further price drops. Moreover, the analyst pointed to the next critical support zone for Bitcoin between $55,500 and $56,200.
At the time of writing this article, Bitcoin is trading around the 100-day SMA at $58,443, facing a roughly 22% drop from its all-time high reached on March 14. The recent decline has caused concern among investors, many of whom are closely monitoring price movements and technical indicators for clues about Bitcoin’s short-term trajectory.
The Future of Bitcoin
Crypto world debates continue, with Cowen assessing Bitcoin’s future price path. Factors such as delayed interest rate cuts and a cooling period following block reward halving could delay the expected mid-cycle peak in the current cycle.
