A crypto analyst known for timely Bitcoin and altcoin calls says that two Mag 7 charts may be foreshadowing BTC rallies.
Crypto strategist Benjamin Cowen, who has 1.1 million followers on X, highlights the 2024-2025 price action of Nvidia (NVDA) and Alphabet (GOOGL) and says the stocks traded within an ascending broadening wedge before breaking out and printing fresh all-time highs.
According to Cowen, Bitcoin’s latest drop to around $74,000 may be a sign that BTC is following in the footsteps of NVDA and GOOGL.
“This is the bull case for Bitcoin, by the way.
If Bitcoin sweeps the low, the pattern would look a lot like prior patterns by GOOGL and NVDA.”
While Cowen is laying out the bull case for Bitcoin, he says he doesn’t believe the potential rally will trigger a new uptrend for BTC.
“I would assume that the rally would not result in a new all-time high, but a macro lower high, before going to the 200-week simple moving average.”
Cowen adds that his base-case scenario for Bitcoin is a drop toward the $74,000 mark before a counter-trend move followed by another sell-off event.
“Sweep the lows, then rally, then dump and maybe the bear market ends.”
At time of publishing, Bitcoin is trading at $75,362, and its 200-week simple moving average is hovering at $58,000.
Cowen also believes that the S&P 500 (SPX) looks ripe for a correction.
“I think we will likely see a 10% drop in SPX soon.”
A 10% SPX correction would take the index to around 6,200. At time of publishing, SPX is trading at 6,939.
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