Cowen Sets Critical Level for Bitcoin at $83,000: Avoid Below This Price

Crypto analyst Benjamin Cowen has identified a critical level for Bitcoin that he believes should not be breached. According to Cowen, Bitcoin's recent strong performance despite macroeconomic pressures is a departure from his initial expectations. He notes that rising energy prices, bond yields, and the dollar index typically put pressure on risky assets like Bitcoin.

However, Cowen acknowledges that Bitcoin has proven more resilient than anticipated. He attributes this to the fact that Bitcoin has surpassed its May peak, invalidating his previous predictions. The analyst believes that the current macroeconomic picture continues to support a bullish thesis for Bitcoin.

Cowen highlights that rising energy prices have driven up long-term bond yields, with the US 10-year Treasury yield reaching 5.1 percent. He also notes that the Fed's policy interest rate remains below market expectations, with the 2-year US Treasury yield at approximately 4.9% and the Fed's policy rate at 4%. This suggests that monetary policy may not be tight enough to control inflation.

The analyst emphasizes that Bitcoin presents a different picture than other assets, which are under pressure from rising interest rates and a strong dollar. Cowen notes that the S&P 500 has struggled to produce new highs in recent weeks, while gold and silver have come under pressure due to rising interest rates and a strong dollar.

Cowen draws attention to Bitcoin trading above its 50-week moving average and the 'golden cross' pattern, which he believes resembles some recovery cycles in the past. He considers Bitcoin's rise above its May peak particularly significant, as it necessitates a reassessment of expectations. A potential pullback could potentially form a higher low instead of falling below previous lows.