A widely followed crypto analyst says Bitcoin (BTC) may be at a critical juncture this month that could determine whether its uptrend continues.
In a new video update, crypto strategist Benjamin Cowen tells his 858,000 YouTube subscribers that if Bitcoin can hold the range low of $90,000 in January as support, the flagship crypto asset will likely have an explosive rally based on historic precedence.
“This is what you look for to try to figure out which [trend] is prevailing. Last January, when we wicked below the range low, we only stayed there a few days. In 2023, when Bitcoin went below these range lows up here, it just kind of kept slowly bleeding and not staying above it. So if Bitcoin can just stay above $90,000 for the next week or two with very little trips below $90,000 then it’s more reminiscent of [January 2024] than it is over here [in July-August 2023].”
Source: Benjamin Cowen/YouTube
However, Cowen says if $90,000 starts to act more as resistance, Bitcoin may be repeating a similar pattern from August 2023 when it corrected lower and entered a consolidation phase before rallying again.
“But if Bitcoin drops below $90,000, and then it drops below $89,000 and then $88,000 and then it pops back up to $90,000 and then it goes to $87,000 and $86,000, and it does kind of like what it did over here, where after it drops below the range low it then slowly drops, that would lead me to believe more so that it could evolve into something like that, where it eventually gives back those gains, and then we have to consolidate at a lower level for longer, and then try to work off from that level. So that’s the way I think you can go about this with somewhat of a plan to say, ‘Alright, it’s going to depend on how long Bitcoin spends below the range low.’”
Source: Benjamin Cowen/YouTube
Bitcoin is trading for $96,496 at time of writing, up 3.5% in the last 24 hours.
Generated Image: Midjourney
