Crypto analyst Benjamin Cowen is discussing how Bitcoin can avoid hitting a massively bearish technical indicator.
In a new strategy session, Cowen explains how Bitcoin may be able to steer clear of the “death cross,” or the crossing of the 50 and 200-day moving averages, a move that is generally accepted as a hugely bearish signal for any asset.
As the BTC/USD chart stands, the two moving averages are sloping toward each other and hinting at a potential cross in the coming weeks. According to the closely-followed trader, Bitcoin would need to move up an average of $800 every day in June to prevent the death cross from playing out.
“Even going up $300 a day on average, we’re still going to get a death cross. $400 a day, we still get a death cross. $500 a day, we still get a death cross. $600 a day we still get a death cross.
The way to avoid the death cross, the way we avoid it, if on average, the price of Bitcoin were to increase by approximately $800 per day starting today (June 5th), then we would avoid a death cross.
So what that would look like [is], by July, we need to be at $60,000. By the beginning of July, we need to be back at $60,000, more or less.”
While many crypto analysts debate the implications of a Bitcoin death cross, trader Michaël van de Poppe argues that it’s largely irrelevant. According to Van de Poppe, there’s no reason why the two moving averages can’t briefly cross each other before recrossing while Bitcoin resumes its rally.
“The topic right now is surrounded by the death cross… How is it going to benefit your strategy? It’s not. It’s just fitting your bias because you feel like you’re losing money and you feel like you’re going to lose even more money and therefore we have got a bear market.”
Rather focusing on the death cross, Van de Poppe is more concerned with the general support area between $29,000 and $32,000 BTC.
JUNE 04, 2021
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