• Benjamin Cowen, a widely followed crypto analyst, warns that Bitcoin may be repeating a 2019 correction pattern.
• The 100-day SMA could determine whether Bitcoin will decline as it did in 2019.
• The 20-day SMA and the 100-day SMA crossover could also determine if a similar market correction will occur in 2023.
Bitcoin Price Correction Pattern Warning
Crypto analyst Benjamin Cowen has warned that Bitcoin (BTC) may be repeating a 2019 price formation that led to a market correction. Cowen notes that in 2019, BTC dipped below the 100-day simple moving average (SMA) after it failed to hold it as support on its first attempt — which is now happening again in 2021.
100-Day Moving Average
Cowen believes the 100-day SMA could determine whether Bitcoin will decline as it did in 2019. He explains that if BTC fails to hold its current position above the 100-day SMA then it could indicate another market correction like we saw in 2019.
20-Day Moving Average
Cowen also states that the 20-day SMA crossover with the 100-day SMA could forecast if 2023 will see another similar market correction or not. In 2019, he explains, once BTC had closed below the 100-day, it popped back above the 20-day and then faded back down — however this did not happen in 2020 nor has happened yet in 2021.
Current Market Situation
At time of writing, Bitcoin is trading for $27,673 — up 0.1% during past 24 hours — and sitting at its 100 day simple moving average after a recent correction. Cowen concludes by stressing how important monitoring both of these SMAs is for predicting future price movements of BTC over these coming months and years ahead.
Conclusion
As we enter into 2021 investors should remain vigilant when watching both the 100 day and 20 day SMAs to gain insight into potential upcoming price corrections of Bitcoin throughout this year and beyond.