Many investors are wondering if Bitcoin (BTC) is in a downward trend again? Although the in-chain data seem to show the opposite. In the past, large BTC outflows were seen from exchanges before Bitcoin started to rally. The same is observed today.
Since the rally that started in 2020, these BTC exits have occurred 3 times. If we look at this 3 times event, we see that the price of the leading cryptocurrency is moving up very sharply.
According to the data announced by Glassnode, as of today, BTC outflows have reached the levels that started the rally in these past periods. The exit of Bitcoin from the stock markets removes the selling pressure on the leading crypto currency and also prevents the deepening of the decreases.
If these BTC outflows continue in the coming days, the leading cryptocurrency is expected to gradually rise to the resistance levels of $ 45,500 and $ 52,000.
In the rising periods of Bitcoin, it is expected that altcoins will gain the most value. The depreciation of the leading crypto currency since November 2021 has caused 90% decreases in some altcoins. Altcoins, which will move up sharply with the recovery of Bitcoin, can compensate for the losses they have experienced in a short time.
Benjamin Cowen: Bitcoin is approaching a critical juncture
Cryptocurrency analyst Benjamin Cowen said that Bitcoin (BTC) is approaching a critical juncture where it must ultimately choose a direction.
In a new video, Cowen says it has recorded higher lows in a pattern similar to other periods in Bitcoin's history. According to the analyst, other times that Bitcoin reflected the current market structure was in 2013, when BTC rallied, and when it was in a bear market in 2018.
“There have been a few instances where we saw similar price action. Once in 2013, we were also putting higher lows. We put a low, we put a higher low, and eventually we moved on. And that's where we then put higher lows in 2018. 2018 There were higher lows in , so you could argue the same thing, but in the end, that low ended and we saw a lower low."
Cowen looks at what could happen next for the leading crypto asset by market cap, as Bitcoin has historically created a pattern that has led to major trend reversals. The analyst says that to regain the uptrend and reduce the possibility of a bear market, BTC must retrace its 200-day simple moving average (SMA), which is currently at around $49,000.
“If Bitcoin can come back and find the courage to rise above its 200-day SMA and hit the $50,000 level, then this will actually look pretty bullish for Bitcoin if there is no lower bottom… And then what happens if we bounce back? One thing to consider is that even if we bottom out lower, there's still a good chance we're back at $40,000, or maybe $42,000 to $43,000. There's still a good chance for that to happen."