Here Are Crucial Levels To Watch Amid Sustained Bitcoin Correction, According to Crypto Analyst Benjamin Cowen
Crypto analyst Benjamin Cowen is outlining the crucial levels to watch in Bitcoin as the world’s largest digital asset by market cap struggles to reclaim $40,000.
In a new strategy session, Cowen says that while he’s ultimately bullish on Bitcoin, he still thinks it’s in traders’ best interest to be prepared for shorter-term bearish price action.
“I don’t think you are doing yourself any favors if you’re not considering the downside risk, and putting out bearish scenarios is not a bad thing. You should consider bearish scenarios. You shouldn’t just say, ‘Oh it’s FUD’ and, ‘Don’t bother me with FUD. All I want to hear is it’s going up every single day.’ You’re not doing yourself any favors. If anything, considering bearish scenarios helps you capitalize on it if it does go very bearish.”
Cowen says that being prepared for a drastic move downward can mean taking advantage of a prime entry point.
“If you operate deterministically and say ‘We will not see $20,000 again,’ and then we do see it again, are you prepared to take advantage of that move, or did you go all in at $60,000 because everyone was telling you it was going to $300,000 the end of the year? By allowing yourself to consider the downside risk, it allows you to probably have some stablecoins on the sideline to DCA (dollar cost average) into the market if things get bearish.”
The closely-followed analyst names some key levels to watch out for in Bitcoin, starting with the 50-week moving average, which is around $28,253 at time of writing.
“Looking at the 50-week [moving average], this could be an area to look at. That right there might be the first area to look at it in the event of a sustained correction. And if we keep coming down, I’m curious how people are going to say that that is still a bull market. I mean, if you’re going down 50-60% you’re definitely having some change in market sentiment…
But the 100-week is even further down at $18,500 and the 200-week is even further down. I don’t think we’re going to these prices at $12,000 or $13,000. These things can happen where we come down and then continue our run and then we get a consolidation phase…
I would argue we’re already in this consolidation phase or reaccumulation phase.”
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Author: Daily Hodl Staff