The recent decline in Bitcoin's price caused concern among traders, but renowned analyst Benjamin Cowen remains confident in the market's current stability.
Current Market Situation
After the recent decline, Bitcoin closed in a positive position, demonstrating strong market sentiment despite intraday volatility. Based on chart analysis, Bitcoin is trading in the $94,000-$95,000 range, which is a crucial support level. At these levels, the market may be testing buyer strength, typical of consolidating markets, and this is not necessarily indicative of an impending severe crash.
Technical Analysis
Technically, Bitcoin continues to trade above its 200 EMA on the daily chart, a crucial sign of ongoing bullish momentum. The Relative Strength Index (RSI) shows neutral momentum, indicating equilibrium between assumed overbought and oversold levels. Near $97,000 is an immediate resistance, which could be a starting point for rekindling bullish momentum if breached.
Long-term Prospects
Cowen's analysis emphasizes that following large rallies, Bitcoin often experiences periods of low volatility and range-bound trading. This allows the market time to calm down and prepare for its next move. Macroeconomic perspective holders and long-term investors might consider accumulating Bitcoin without panicking over temporary price swings.
The current market situation for Bitcoin indicates resilience and stabilization following recent fluctuations. Analysts highlight the importance of the $94,000 support level and the potential for resumed growth upon breaking the $97,000 resistance.
