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According to Benjamin Cowen, the first cryptocurrency will be in a downward movement in the coming months.
The opinions of experts may not coincide with the position of the editorial board. RBC-Crypto does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
Cryptanalyst Benjamin Cowen believes that Bitcoin should not grow significantly in the first quarter of 2022. According to the analyst, the cryptocurrency will remain in a correction phase for several more months before returning to parabolic growth.
Cowan explained that at the end of November, Bitcoin dropped below the 20-week moving average (SMA), which runs at $ 53K and the 21-week exponential moving average (EMA), which runs at $ 51K. it is necessary to break through these levels and gain a foothold above them, the analyst explained.
According to Cowan, a similar situation already occurred in May last year, when the price of the cryptocurrency dropped to $ 30 thousand for the first time since January. Then it took Bitcoin almost three months to get out of the correction phase. The asset was able to break through the SMA and EMA only in August, the analyst added.
On January 4, Bitcoin is trading at $ 46.5 thousand.Over the day, the cryptocurrency has fallen in price by almost 2%, and its capitalization has decreased to $ 880 billion, according to CoinGecko. On December 4, for the first time since the end of September, the asset price fell to $ 42 thousand. On November 10, the asset price updated its historical maximum above $ 69 thousand.
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