Bitcoin's 'Upside Down' Market Structure Raises Questions About Q4
Crypto analyst Benjamin Cowen has dubbed Bitcoin's current market structure 'The Upside Down', comparing it to the popular Netflix show Stranger Things. This unusual label comes after Bitcoin surged past an eight-month high near $87,000, despite several macroeconomic signals that should have pushed prices lower.
The signals Cowen had expected to push prices down include rising Treasury yields, higher energy prices, and a stronger dollar. However, instead of collapsing as he predicted, Bitcoin has jumped 51% from $57,800 in the last three months to break above $87K.
Cowen notes that this pattern is not new for Bitcoin. When it has happened historically, 'we've been back in business'. This means that if Bitcoin stays above the current level of $83,000 and continues posting higher weekly closes, the current structure could gain further confirmation.
However, a weekly close below $83K could set up another Q4 decline. The Golden Cross is also an important indicator for Cowen, who says it forms when Bitcoin's 50-day moving average moves above its 200-day moving average. This usually signals a short-term price rally, but history shows that Bitcoin does not always immediately follow this pattern.
Cowen emphasizes the importance of Bitcoin staying above its 50-week moving average and maintaining higher weekly closes to confirm the current structure. If it succeeds in doing so, the $83K level becomes an important benchmark for the market.