Bitcoin (BTC) $96,738.3 analyst Benjamin Cowen stated that the next week or two could be an important turning point that could determine whether Bitcoin can continue its upward trend.
Support Level and Positive Scenarios
Cowen stated that Bitcoin maintaining the $90,000 level as support in January could be a harbinger of a strong rally for the cryptocurrency within the framework of historical data. He emphasized that Bitcoin showed a rapid recovery after a similar support held for several days in January 2023.
However, Cowen noted that if the $90,000 level begins to act as resistance, Bitcoin could experience a period of retreat to lower levels and consolidation, as it experienced in August 2023. In this scenario, whether Bitcoin falls below $90,000 will be an important factor that will determine its future movements.
“If Bitcoin can stay above $90,000 for the next week or two, this would indicate a more positive outlook for January 2024 compared to the current July-August 2023 period.” –Benjamin Cowen
Bitcoin Predictions
Bitcoin’s current price is $99,496 and has increased rapidly following the CPI data. At the same time, reports that the new SEC administration will stop crypto cases other than fraud also make investors hungry for altcoins.
Cowen noted that if Bitcoin falls below $90,000 and continues to fall below these levels, the cryptocurrency could consolidate at lower levels. In this case, there is a risk that Bitcoin will lose its current gains and rebound from lower levels. This does not seem to be the case under current conditions, and if Trump’s inauguration does not trigger a big news sell situation, we may even see a new ATH before the end of the month.
The analyst stated that market participants should closely follow Bitcoin’s short-term movements. How support and resistance levels form will play a critical role in determining Bitcoin’s future direction.
The developments that Bitcoin will face in the next week or two may have significant effects on the cryptocurrency market. If the support level is maintained, the upward trend is expected to continue, while if there is a decrease, a consolidation process can be observed. It will be beneficial for investors to follow this critical period closely so that they can react more consciously to market movements.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
