In a recent analysis, crypto analyst Benjamin Cowen highlighted a time of significant uncertainty in the Bitcoin (BTC) market, cautioning investors about critical price thresholds. While technical indicators suggest a possible upward trend, Cowen emphasized that wider economic conditions present considerable risks. He warned that Bitcoin could experience a substantial price movement in the upcoming days.<\/p>\n
According to Cowen, Bitcoin is currently at a pivotal juncture around $83,000. He noted that maintaining this level could lead to a rise above $87,000, potentially marking a new local high. However, Cowen cautioned that if this upward movement proves to be a false breakout, the market could face a rapid decline.<\/p>\n
He observed that Bitcoin’s recent performance above its 50-day moving average and trading above its 50-week moving average presents a favorable technical outlook. Indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), coupled with a recent golden cross, bolster bullish expectations. Cowen pointed out that similar instances have occurred at the end of previous bear markets.<\/p>\n
However, he stressed that these technical indicators alone do not guarantee a bullish trend. A weekly close below $83,000 could jeopardize the current positive outlook, which could lead to concentrated selling pressure reminiscent of false breakouts in 2015 and 2020. To sustain its upward trajectory, Bitcoin needs to maintain its 50-day moving average and achieve a new high above $87,000 by the end of October. Otherwise, Cowen warned, the price may drop back toward the lower end of its trading range.<\/p>\n
Another significant concern raised by Cowen pertains to the Federal Reserve\u2019s monetary policy. He argued that rising inflation and potential interest rate hikes could negatively affect Bitcoin and other volatile assets. Contrasting the current environment with that of 2019, he noted that Bitcoin’s growth at that time was fueled by a surge in the Fed’s balance sheet and interest rate cuts, unlike the current tightening approach.<\/p>\n
Cowen expressed worries about deteriorating economic conditions and a possible significant correction in stock markets, which could further impact the cryptocurrency sector.<\/p>\n
The analyst also pointed to Bitcoin’s valuation relative to gold, noting that it lacks a clear bottom signal. He discussed scenarios where the Bitcoin\/gold ratio could revert to historically observed levels, suggesting that, with gold priced at $5,000, Bitcoin could fall to $50,000, and at $6,000, it could drop to $60,000. He emphasized that these projections are based more on macroeconomic trends than direct price targets.<\/p>\n
Lastly, Cowen cautioned that a further decline leading to new lows could have more damaging repercussions than anticipated, damaging investor confidence and potentially extending a recession into 2027.<\/p>\n
This is not investment advice.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" In a recent analysis, crypto analyst Benjamin Cowen highlighted a time of significant uncertainty in the Bitcoin (BTC) market, cautioning investors about critical price thresholds. While technical indicators suggest a possible upward trend, Cowen emphasized that wider economic conditions present considerable risks. He warned that Bitcoin could experience a substantial price movement in the upcoming […]<\/p>\n","protected":false},"author":14,"featured_media":60461,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Analyst Warns Bitcoin Shouldn\u2019t Close Above Key Level This Week - Bitrabo","description":"In a recent analysis, crypto analyst **Benjamin Cowen** highlighted a time of significant uncertainty in the Bitcoin (BTC) market, cautioning investors about cr"},"_slim_seo_primary_term_category":0,"_slim_seo_primary_term_post_tag":0,"footnotes":""},"categories":[316],"tags":[788,448,5986,984,7385,808,1191,3398,7324,809,509],"class_list":["post-60460","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-analyst","tag-bitcoin","tag-close","tag-drop","tag-experienced","tag-issues","tag-level","tag-sharp","tag-shouldnt","tag-warning","tag-week"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/60460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=60460"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/60460\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/60461"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=60460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=60460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=60460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}