In a recent video by Benjamin Cowen, CoinSpeech collected important insights on the current state of Bitcoin and its place within the broader market trends. Below, you can find Benjamin Cowen’s new video.
Bitcoin’s Bull Market Support Band Under Scrutiny
One of the prominent aspects discussed by Cowen was the Bitcoin Bull Market Support Band. “We have in fact had a weekly close below the 20-week moving average,” he pointed out. Although Bitcoin is still above the 21 EMA, Cowen noted that recent closes below the 20-week moving average are significant.\
Recent Historical Patterns Explained
Benjamin highlighted historical patterns we’ve witnessed: “Bitcoin had also coincidentally…about a 27% move to the upside in June.” Through various years, similar upward trends have emerged around late April and early May. Cowen accentuates that even if short-term videos may sometimes seem outdated, his goal is to focus on long-term trends rather than momentary market movements.
Altcoin Pairs at Critical Juncture
One of the more striking points from Cowen was his analysis of altcoin pairs against Bitcoin: “This week was the lowest weekly close by all Bitcoin pairs we’ve had for the entire cycle.” He points out that they have been consistently breaking down, much like in 2019. This, according to Cowen, is due to “liquidity flowing from high-risk assets to low-risk assets.”
Bitcoin Dominance and Future Trends
Another key focus was on Bitcoin dominance. Cowen believes that Bitcoin and Ethereum dominance are set to continue rising: “Bitcoin dominance right now is still at 55%… Bitcoin dominance just put on a new cycle high.” He posits that most altcoins are likely to keep underperforming Bitcoin, a trend reinforced by tighter monetary policies.
Practical Insights and Future Considerations
Addressing tactical decisions, Cowen advises a long-term Dollar-Cost-Averaging (DCA) strategy for Bitcoin: “I would just say look, DCA strategy over the Long Haul based on risk levels you’re comfortable with is probably going to be the best strategy.” He also discusses the potential downside risks if Bitcoin loses support bands.
Macro Trends Play Out Over Time
Cowen emphasizes that his analysis is rooted in broader macroeconomic trends that unfold over years, not days: “This is a macro view that takes place over many many years.” Despite the sometimes slow-moving nature of these changes, Cowen asserts that his perspectives remain stable and accurate over the long term, pointing out that the ups and downs are a natural part of the market’s pattern.
In conclusion, Benjamin Cowen’s comprehensive analysis provides a meticulous examination of Bitcoin’s current position and potential future trends. For those keen on understanding the larger movements in the crypto world, his insights offer a valuable perspective.