Famous Crypto Analyst Says Bitcoin Could See a Big Price Bounce… This Month!

Benjamin Cowen, a popular crypto analyst at Into the Cryptoverse (quantitative market analysis), believes Bitcoin could see a strong bounce this month. Cowen makes his prediction based on three metrics.

The first metric is Bitcoin’s inverse correlation to the US dollar index.

Cowen said, “We know that the US dollar currency index, when it’s moving higher in a parabolic rally, we know Bitcoin goes down. We’ve seen this many times in the past. And furthermore, if we just simply pull it up, you can see that over the last several months, the dollar has been in a parabolic rally.

However, recently, you can see it’s pulled back a bit. Now, that does not, unfortunately, mean that the dollar rally is over. It could just be taking a break for a while. But certainly, looking at the dollar, this pullback leads us to believe that risk-on assets could start to do well for a few weeks.” 

Metric #2, as Cowen states, is that the NASDAQ and S&P 500 had bounced off recent lows, which Bitcoin has been closely correlating, especially the NASDAQ.

“The reason, I think, is because we are in a macro risk-off time, and so I would argue cryptocurrencies are inherently riskier than equities, so equities are the first to move when it looks like we might be getting at least a few weeks of some relief. And then as long as that sustains, then crypto will kind of be next in line to go up as well.”   

Cowen’s third metric is the 90-day exponential moving average (EMA) of the Bitcoin Fear and Greed Index. As Cowen says, it’s “lower than it’s ever been.” Right now, it’s around 16.

EMA Values between 0 and 24 indicate extreme fear. Values between 25 and 49 indicate fear. Between 51 and 74 indicate greed, and a score above 75 indicates extreme greed.

“Why is that significant?”, he said. “We’ve never seen that before. The 90-day EMA of the Fear and Greed [Index] is lower than it’s ever been.”

Typically, as often seen in equities, massive amounts of fear could indicate we’re near a bottom, while massive amounts of greed (overexuberance) could indicate we’re near a top.

With the EMA so low, the parabolic rise in the US dollar index now seeing a slowdown, and the equities market (especially the NASDAQ) bouncing off recent lows, Mr. Cowen believes a big June Bitcoin rally could be a very real possibility.

Read more about Benjamin Cowen’s BTC predictions, HERE

Source: https://dailyhodl.com/2022/05/31/bitcoin-to-explode-higher-next-month-crypto-analyst-benjamin-cowen-says-three-metrics-suggest-june-rally-incoming/