Benjamin Cowen talked about Bitcoin (BTC) price expectations as the leading cryptocurrency continues to trade below $50,000.
In his newly released video, Cowen states that BTC is currently well below the bull market support band, a technical indicator that is a combination of the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA). Bitcoin was trading at $ 46,700 at the time of writing.
The 20-week SMA is around $53,000 and the 21-week EMA is just below $51,000, which means Bitcoin could stay in this state for several months, according to Cowen.
“Historically, we know that when we have weekly closes below that it goes below the 20-week SMA – it may take a few months before we break above that. If you remember the summer, we broke down in mid-May and didn't actually break up until August. "We're under it, so it's been a little over a month so far. I mean it seems perfectly logical that we still have a long way to go before we get above that."
Cowen doubts that Bitcoin will have a parabolic Q1 and predicts that the top crypto asset will be “range-bound for a while.”
The analyst also states that if the price of Bitcoin rises above $ 53,000, there may be a rise in the leading cryptocurrency.
According to Arcane Research, fear in financial markets directly affects Bitcoin's performance. The Cboe Volatility Index accompanied Bitcoin sales. Arcane Research warns that market fluctuations in 2022 could have implications for the short-term price trajectory of the leading cryptocurrency Bitcoin.
The leading altcoin Ethereum, on the other hand, far outperformed Bitcoin in 2021. ETH posted a 418 percent increase over the year. “This performance gap is the widest range seen since Ethereum was launched in 2015,” Arcane said.