A widely followed crypto analyst says gold may have signaled the local top of Bitcoin’s (BTC) recent strength.
In a new video update, crypto strategist Benjamin Cowen tells its 800,000 YouTube subscribers indicate that if gold continues to do well, the top crypto assets by market cap are in for a prolonged correction
“So far at least you can see that gold’s 2019 breakout locally marked the top for Bitcoin. Bitcoin, of course, went higher a year later. But even [this year]you can see that gold broke out right when Bitcoin/USD found that local top in March.
So that’s one thing: if gold continues to do well, the implication could be that Bitcoin will actually fall after the consolidation below the 8-week period. [moving average] instead of a pop-up like last year.”
Cowen goes on to say that the collapse of Ethereum (ETH) against BTC (ETH/BTC) is also correlated with Bitcoin tops, which he notes may have already begun.
“The other thing that has already happened is the ETH/BTC breakdown. So if you look at the ETH/BTC breakdown, you can see that the last cycle, once it started to collapse, marked the top for BTC/USD before a bigger correction, and you’re kind of looking at something similar. [this year].”
ETH/BTC yes trade for 0.05143 ($3,258) at the time of writing.
The crypto analyst then says that altcoins running against BTC would again be a sign of a Bitcoin top, but he believes that has yet to happen this time.
“When [altcoins] Broken [last cycle], which marked the local top for Bitcoin. And Bitcoin still had some pretty nice rallies as altcoins bled against Bitcoin. That hasn’t happened yet. Altcoins did get a lick, but no sustainable weekly closing underneath.
So it is not crystal clear how Bitcoin will ultimately break. My best guess at what happens is that it will basically bounce around [between $66,000 and $56,000]… I would say there will be a lot of time to pass between the eight-week SMA and the bull market support band in the coming weeks.”
Bitcoin is trading at $63,386 at the time of writing, down 1.2% over the past 24 hours. As of early 2024, it cost about $44,000.
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Generated image: Midjourney