Bitcoin Could Jump Higher if it Holds Above This Support Level

Analyst Benjamin Cowen suggests that the likelihood of Bitcoin (BTC) experiencing a significant increase will grow if it can surpass a crucial moving average on the weekly chart.

In a recent video, Cowen noted that Bitcoin is currently at a “very critical spot.” He believes that BTC could see a “further rally” if it rises above the 20-week moving average and holds that position as support.

In his analysis, Cowen recalls a similar situation from 2021, where maintaining the 20-week Simple Moving Average (SMA) indicated potential for upward movement, which resulted in a new all-time high at that time.

Cowen emphasizes that for Bitcoin to replicate its historically significant rallies that follow the halving periods, it needs to break above the 20-week SMA. He draws parallels to Bitcoin’s price behavior in 2013, where the cryptocurrency briefly rose above the 20-week SMA a few times before sustaining higher levels.

He mentioned that in 2013, Bitcoin established a pattern of lower highs before eventually maintaining support above the 20-week SMA by August, leading to a substantial rally in the fourth quarter.