Analyst Issues Warning! “Bullish at First, But Then…”

Gold Cross Alert for <a href="https://xpertsstudio.com/bitcoin-transfer-of-654-btc-from-coinbase-sparks-market/” title=”Bitcoin Transfer of 654 BTC from Coinbase Sparks Market”>Bitcoin: Analyst Issues Warning! “Bullish at First, But Then…”

Benjamin Cowen, a well-known analyst in the cryptocurrency market, analyzed the “Golden Cross” pattern on the Bitcoin chart, where the 50-day moving average crosses the 200-day moving average upwards. Cowen noted that investors often experience a price drop shortly after these crossovers, which are technically considered a bullish signal, contrary to expectations.

Analyst: “Bitcoin Generally Seen to Decline After a Gold Crossover”

According to Cowen, the rallies preceding the Golden Cross trigger the intersection by pushing the moving averages higher; however, immediately after the intersection is complete, the market often sees sell-offs from local highs. Comparing past data, the analyst noted that during the Golden Cross periods in 2019 and 2023, there were pullbacks of between 12% and 15% at the moment of the intersection, after which the price recovered and reached new local highs.

The analyst states that the pullback currently underway should be considered quite natural given the structure of the market. Cowen notes that the key factor will be the character of the rebound rally that follows the decline, rather than the depth of this initial wave of selling. He adds that it remains to be seen whether Bitcoin will reach a new high or a lower peak after the sell-off.

Benjamin Cowen, also discussing future scenarios, stated that the bullish scenario would gain strength if a higher peak were to form during the rebound. Conversely, he pointed out that if the rebound remains weak and forms a lower peak, as seen in 2014 and 2015, the risk of a new downturn in the fourth quarter of the year could increase.

*This is not investment advice.

Source: cryptonews.net