Bitcoin Will Pump Soon? Analyst Benjamin Cowen Told Bitcoin Is Following 2018 Market Structure

Bitcoin Will Pump Soon?

According to crypto expert Benjamin Cowen, Bitcoin (BTC) has been following a certain market structure since 2018.

Cowen informs his subscribers in a new strategy session that Bitcoin managed to print higher lows between $9,000 and $11,000 in January 2018. He observes Bitcoin finally crashed to a new low, about $5,800, at the time.

“You can see in 2018, we had a low, we had a higher low, [and] we had this one [which is] a pathetic attempt at a higher low. [We] ultimately put in a lower low and the back up to the trendline. Furthermore, it was a rejection off the 200-day simple moving average [SMA] in between.”

Over the previous months, Bitcoin has been reflecting the 2018 market structure, according to Cowen. From January through May, BTC had numerous higher lows between $30,000 and $39,000 before correcting down to $26,000, according to him.

If BTC does really follow the fractal, the crypto trader predicts a major surge for Bitcoin.

“What happened [in 2018] is that we went back up to the trend line that held resistance because in bear markets trend lines tend to hold resistance. We also went back up to the 200-day moving average, so there was a little bit of confluence there between that trend line where we were putting in higher lows and the 200-day SMA.”

If you theoretically extended the current 200-day moving average to mid-June, it would likely be between $40,000 and $42,000, according to Cowen.

“With that in mind, we must wonder, ‘Well is that level important?’ And I would argue it’s very important. The $40,000 to $42,000 level carries a lot of weight with Bitcoin because that was where we first got rejected back in January of 2021. We got rejected by it in the summer of 2021 as well after we fell below it… So if the fractal is to play out – which, as always, is a big if – it would mean over the next several weeks, we could see that pump back up to approximately $40,000, plus or minus a couple thousand dollars.”

At the time of writing, Bitcoin was trading at $29,402. In the last 24 hours, the most valuable cryptocurrency has lost more than 3.57% of its value.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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