Cowen Puts 65% Odds on Further Bitcoin Bear Market, Eyes $53K
Benjamin Cowen sees a 65% chance Bitcoin's cycle low is still ahead, watching the $53,000 realized price level.
Bitcoin holds above $80,800 as markets eye US jobs data for direction, with $85,000 resistance in focus.
Key takeaways
Bitcoin, Ethereum and XRP built on their weekly gains on Friday ahead of the U.S. Nonfarm Payrolls data, which traders see as the next potential catalyst for market direction.
Bitcoin was trading north of $80,800, having risen more than 4% over the course of the week. Ethereum also showed strength after it broke through and closed above the $2,500 resistance mark.
XRP held a cautiously positive near-term view after bouncing from a key support level earlier in the week.
The U.S. Nonfarm Payrolls data may shape expectations regarding the Federal Reserve’s upcoming monetary policy move.
A jobs report that comes in stronger than anticipated could reinforce the view that interest rates will stay elevated or climb further, potentially weighing on cryptocurrencies and other riskier assets.
On the other hand, softer jobs data could lessen the pressure on the Federal Reserve to uphold a hawkish stance and provide extra support for Bitcoin, Ethereum and XRP.
Traders should thus brace for heightened volatility as markets revise their interest-rate expectations after the release.
Bitcoin was trading around $80,856 on Friday and held a clearly bullish technical posture.
BTC remains comfortably above its main exponential moving averages:
The distance between Bitcoin’s current price and these averages suggests the broader uptrend is still well supported.
That said, the wide gap also creates scope for a pullback should traders start locking in profits after the recent rally.
Bitcoin’s Relative Strength Index is near 71 on the daily chart. A reading above 70 typically signals that an asset has moved into overbought territory. That does not guarantee an immediate reversal, but it does indicate the rally could be stretching.
The Moving Average Convergence Divergence indicator remains in positive terrain, pointing to continued bullish momentum.
Still, momentum appears less forceful than in the earlier phase of the rally, hinting that buyers may be losing some steam as Bitcoin nears resistance.
The horizontal resistance at roughly $85,000 is Bitcoin’s next major upside target. Fresh selling could emerge around that level as profit-takers step in and previously sidelined sellers enter the market.
A decisive daily close above $85,000 would signal that buyers are still in charge and could open the door to further advances.
Failure to break that level could lead to consolidation or a short-term pullback as the market digests Bitcoin’s rapid climb.
Bitcoin’s first major demand zone is formed by its three key moving averages. The 200-day EMA at $72,539 offers the strongest dynamic support, followed by the 50-day EMA at $71,126 and the 100-day EMA at $69,696.
This creates a broad support band between roughly $69,700 and $72,500. If Bitcoin drops below all three averages, the next horizontal support levels are at $66,500 and $62,300.
A break below those deeper levels would seriously undermine the broader bullish structure. For now, Bitcoin remains comfortably above support as traders look toward a potential test of $85,000.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
Benjamin Cowen sees a 65% chance Bitcoin's cycle low is still ahead, watching the $53,000 realized price level.
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