This Indicator Could Soon Signal End of the Bull Cycle for Bitcoin Based on History, Says Benjamin Cowen

Cryptocurrency analyst Benjamin Cowen is warning Bitcoin (BTC) might flip bearish primarily based on the historic habits of 1 broadly used indicator.

In a brand new technique session, Cowen tells his 887,000 YouTube subscribers that the Relative Power Index (RSI) on Bitcoin’s weekly time-frame is at present at a assist degree that has beforehand marked the top of the cycle every time it breaks down.

The RSI is a momentum oscillator that’s calibrated from zero to 100 and is used to determine oversold or overbought situations, with a studying above 70 indicating overbought situations and a studying under 30 indicating oversold situations.

“Structurally there’s been no denying there have been similarities between this cycle and the 2016-2017 cycle. There’s type of a weekly RSI assist degree that Bitcoin continues to attempt to maintain assist at. If it breaks, it’s attainable that it means the cycle is over.”

Wanting on the dealer’s chart, he appears to counsel that BTC’s weekly RSI has assist at round 44.

Bitcoin is buying and selling at $86,096 at time of writing with the weekly RSI hovering at 50.

The broadly adopted analyst additional says that if Bitcoin loses the RSI assist degree on the weekly time-frame, it could possibly be an indication that one thing is damaged within the US financial system and the Federal Reserve would possibly step in and loosen financial coverage.

“If the weekly RSI breaks down under 44, then I feel you actually begin to argue you’re going extra so into the financial coverage view the place the Fed’s going to attempt to come to the rescue sooner or later and hopefully they haven’t completed an excessive amount of harm to type of restore issues.

I feel the larger concern for the Fed this cycle than in 2019-2020 is that inflation wasn’t actually a difficulty over right here but it surely has been a difficulty lately.

And so they won’t be as keen to assist markets in the identical manner as shortly till it’s extra obvious that inflation is definitely coming again right down to earth and we’re not going into simply one other inflationary wave.”

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