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Traders were worried after Bitcoin recently swept its range lows. Benjamin Cowen, a well-known analyst, thinks this decline may not be as dire as it first appears. Bitcoin closed in a positive position, which is regarded as a sign of strong market sentiment despite intraday volatility. Based on an analysis of the given charts, Bitcoin has been trading close to the $94,000-$95,000 range, which is regarded as a crucial support level.
At these levels, the market may be testing buyer strength based on the sweep of these range lows. Interestingly, Cowen stresses, that these actions are typical on markets that are consolidating and should not be seen as a sign of an impending more severe crash. Instead, they frequently act as a grab for liquidity ahead of a possible recovery.
Technically speaking, Bitcoin continues to trade above its 200 EMA on the daily chart, which is a crucial sign of sustained bullish momentum. The asset is neither overbought nor oversold, according to the RSI (Relative Strength Index), which shows neutral momentum. Short-term sideways movement may be made possible by this equilibrium.
Near $97,000, a level that Bitcoin has had difficulty decisively regaining, is the immediate resistance to watch for traders. If this resistance is broken, bullish momentum may be rekindled, and Bitcoin may move closer to the psychological $100,000 mark. On the down side, if the $94,000 support is broken, it may lead to a decline to the next important support at $88,000.
Cowen’s analysis emphasizes that following large rallies, Bitcoin frequently experiences periods of low volatility and range-bound trading. It gives the market time to calm down and get ready for its next move. Those with a macro perspective and long-term holders might find that now is a good time to accumulate and chill rather than overreacting to transient price swings.
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