Bitcoin Trapped Between Resistance and Support Levels, Decision Imminent
Bitcoin has spent eight weeks trading between $58,000 and $67,000 without breaking out or down. Analyst Benjamin Cowen believes a decision will be forced before the end of the year as two converging levels close in on Bitcoin from both sides.
The bear market resistance band is moving downward from above while the 200-week moving average rises from below. The gap between them is narrowing quickly, and Cowen sees this as an indication that a decision must be made soon. He puts the bear market resistance band at around $69,000 and the 200-week moving average at $63,700.
Cowen's base case is that Bitcoin will move lower before it moves higher, citing on-chain indicators like the MVRV Z-score as evidence. Historically, mid-year has been a period of weakness for Bitcoin, with significant price drops in 2022, 2018, and 2014.