Bitcoin, the flagship cryptocurrency, is currently at a critical juncture according to a popular crypto analyst. Benjamin Cowen, a well-known figure in the crypto space with a large following on YouTube, believes that Bitcoin’s performance in January will determine whether its uptrend continues.
Cowen, in a recent video update to his 858,000 subscribers, pointed out that Bitcoin’s ability to hold the range low of $90,000 as support could lead to an explosive rally. He referenced historical data, noting that in January 2024, Bitcoin quickly bounced back after dipping below the range low, while in July-August 2023, it struggled to stay above that level.
“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],” Cowen explained.
However, if $90,000 starts to act as resistance instead of support, Cowen warns that Bitcoin may follow a similar pattern to August 2023, where 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,” Cowen added.
As of now, Bitcoin is trading at $96,496, up 3.5% in the last 24 hours. The cryptocurrency market is closely watching these key levels to determine the future direction of Bitcoin’s price.
In conclusion, Bitcoin’s performance in January will be crucial in determining whether it continues its uptrend or enters a consolidation phase. Traders and investors are advised to closely monitor the $90,000 level as it could provide important insights into the future price action of Bitcoin. Stay tuned for more updates on Bitcoin’s price movements in the coming weeks.