A widely followed crypto analyst says that Bitcoin (BTC) may be acting as a “more volatile version” of the stock market.
In a new video update, crypto strategist Benjamin Cowen tells his 801,000 YouTube subscribers that Bitcoin may be following in the footsteps of the Russell 2000 Index, NASDAQ and S&P 500.
According to the analyst, the three major stock indexes rose to around their 50-day simple moving average (SMA) prior to witnessing a pullback. Cowen says that BTC may also rise to its 50-day SMA before another sell-off event.
“You have the S&P, the NASDAQ and the Russell all closing Friday just below their 50-day moving average. A couple of weeks ago, we were talking about the S&P, the NASDAQ and the Russell were all at their bull market support band and for some reason Bitcoin was not.
And if [Bitcoin] is just a more volatile version of the stock market, it would stand to reason that if you’re going to get a correction by the S&P and the NASDAQ and the Russell to the 20-week SMA, 21-week EMA (exponential moving average) you’re probably going to see it happen for Bitcoin. And now it has.
But then we just showed that the S&P, the Russell, the NASDAQ just went back up to their 50-day moving average. Then it raises the question where’s the 50-day moving average for Bitcoin?..
It’s roughly $66,000…
Now if it doesn’t get here, that would imply a lot of weakness in the cryptoverse. If it gets there, then it is just more evidence once again that we are just sort of operating as a more volatile version of the stock market and maybe even a somewhat lagged version of the stock market.”
Yesterday, BTC hit a high of $65,520. At time of writing Bitcoin is trading for $63,711.
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The post Bitcoin Rally Could Be Short-Lived if BTC Follows Stock Market, According to Analyst Benjamin Cowen appeared first on The Daily Hodl.
