Bitcoin Price On The Verge To Face More Losses, Here Is Why

A renowned cryptocurrency expert is using a certain statistic to forecast where Bitcoin (BTC) prices will head in the future.

Benjamin Cowen informs his 748,000 YouTube followers in a new strategy session that the 200-day simple moving average (SMA) is an effective prediction of future BTC levels, providing 2018 graph statistics as an illustration.

Cowen quotes that until the 200-day moving average gets dismissed, everyone has a strategy. According to him, following the rejection of the 200-day moving average, we failed to make a higher low. This was followed by a lower bottom- similar to what happened back in 2018.

Further, he added that often after making the initial lower bottom, there is a relief rebound back to the 200-day moving average. Else, it’s a return towards the northern line which we were holding as security before.

Cowen then highlights two possible price levels on the SMA. He feels $41,700 and $40,000 are critical milestones for BTC to maintain.

Explaining his stance, the strategist quotes that at the moment, the 200-day SMA is about $41,700, but it is falling swiftly. He predicts that if we hesitantly extend it out to the mid of June, the 200-day moving average may even be closer to $40,000.

He offered a solution to this predicament as well. As per his belief, if we have a recovery rebound, we’ll choose to keep an eye on that 200-day moving average. This will happen because it’s a boundary that we need to cross.

The expert closes his observations by stating that it may require multiple trials for Bitcoin to break through the 200-day SMA price point. BTC is now in a bearish trend, it’s difficult to predict how and when the world’s biggest currency by market share will rebound again.

Bitcoin Price To See Another 200-Day SMA Soon

Crown urges his followers to remember that we observed persistent rejection by the 200-day SMA. It finally broke through on the fourth genuine try.

There might even be a next one in the following weeks. If that happens, gear up for the ‘200-day’. 

The bull market support band is a technical indicator that combines Bitcoin’s 20-week simple moving average and 21-week exponential moving average (EMA).

At the time of reporting, Bitcoin is changing its hands at $30,296 with a fall of 0.59% over the past 24hrs.