Bearish opinions on bitcoin have been gripping the market for some time now. But these opinions are highly credible due to the pessimistic performance of historically important indicators. Benjamin Cowen emphasized that these indicators can play an important role in reaching Bitcoin 100k. Here is a breakdown of the important levels for these indicators.
Bitcoin – 4 Critical Zones
The fall of the royal coin started as soon as it reached its ATH in April. Since then, multiple failures and sudden glitches have resulted in the coin dropping to $ 31k, which means a 52% drop. As soon as the market noticed the first signs of a trend reversal, Cowan stated:
“We can survive bearish times in 3-6 months.”
And we did.
The 50-week SMA has been a consistently significant level in Bitcoin’s history as it acted as the support needed for a bull run. Previous examples regarding 50 SMA show that the rebound from the level in 2014 resulted in a 61% increase in price. Likewise, the coin rallied 45% in 2018 and rallied 34% again in 202 after testing the support line.
At present, this level has already been canceled, since the 50 WSMA is placed at the level of 32 thousand dollars, while the price is already lower at 31 thousand dollars.
Bullish Market Support (BMS) is one of the most important areas that, as the name suggests, creates perfect support for a bullish move. Bitcoin is far below the BMS at this point, and if the king’s coin can even test it as resistance, that would be a great sign. In addition to BMS, the 100-week SMA still retains its value as a mission-critical support, as it has in the past. The $ 20K indicator is an interesting development as many institutions, including JPMorgan, have suggested that Bitcoin should fall to $ 20-25K. Cowan said roughly the same thing:
“With $ 20K in Bitcoin, if we were to go back to $ 20K, I can say that in this scenario, I would start to get a lot more optimistic.”
Where to go?
Cowen believes that Bitcoin can reach $ 100,000 by the end of the year only if it can return the 20-week SMA. This line marks the upper support band of the bull market. As soon as it becomes support again, the BTC market will see sustained bullish gains.
However, this can only happen when Bitcoin moves sideways for another couple of months. Consolidation will give BTC time until support for the bull market reaches $ 30,000 and actually turns into support. That would be exactly what is needed for a bullish rally.