Bitcoin (BTC) Price Dip Raises Questions About Q4 Rally Potential, Analyst Benjamin Cowen Highlights Trend

Analyst Benjamin Cowen highlighted this trend in a recent post on X. Cowen emphasized Bitcoin's position relative to its BMSB, noting the importance of regaining this level in the coming weeks following the recent BTC price crash.

Bitcoin price dropped below a crucial bull market support band in recent weeks, sparking concerns over its ability to stage a Q4 rally, a trend observed in previous years. However, several key indicators suggest that BTC price could still be gearing up for a strong final quarter.

Bitcoin Price Closely Tracking 2023 Bull Market Trend

According to Chainanalysis, BTC price exhibited a unique pattern in summers of 2013 and 2023, where the asset recovered from a summer price bottom, leading to significant price rallies in Q4.

In 2013, Bitcoin bottomed in early July before surging above the 21-week EMA and rallying in Q4. This year, BTC price painted a similar pattern, dropping below its bull market support band in Aug before staging a strong comeback in the final quarter.

Highlighting this trend, analyst Benjamin Cowen shared a chart on X, showing Bitcoin’s price relative to its bull market support band. According to Cowen, BTC price needs to regain this level in the coming weeks following the recent price crash.

“This is the level that matters. We need to get back up above this.”

Bitcoin RSI, Relative Strength, Chart Formations Point To Bull Trend

Meanwhile, another independent analysis by Jacob Canfield pointed out bullish signals from Bitcoin’s Relative Strength Index (RSI). According to Canfield, there are several high-probability trade setups forming on the daily chart with the RSI.

“If you’re looking at daily for any high-probability setups, you can see a bullish hidden divergence forming on the RSI here. We’ve also got a potential bear flag forming on the daily.”

Moreover, the analysis predicts a potential revisit to Bitcoin’s former range high of over $70,000, if the token reclaims the daily trend.

“If we can continue up from this daily trend, we could see a move back up to the former range high, which would be around $70,000 to $73,000.”

Bitcoin Volatility Index Hints At Second Phase Of Bull Trend

Another independent analysis highlighted that the Bitcoin volatility Index suggests that high volatility phases often precede the second phase of a bull market. According to the analysis, when the Volatility Index enters high volatility territory, the metric usually signals the start of major bullish momentum.

“The second phase of bull markets is usually marked by high volatility. We are currently in the early stages of the second phase. Pay attention to the realized volatility throughout H2.”

Rate Cut Expectations Add To Optimism For Bitcoin Bull Run

Rising interest rate cut probabilities are also seen as a factor that could help Bitcoin resume its bull run in the coming weeks. According to CME data, as of July 8, Wall Street traders saw a 93.3% possibility of the Federal Reserve cutting interest rates by 25 basis points in September.

The probability was less than 50% a month ago. Expectations for lower interest rates have risen as a result of a slowdown in hiring in the United States.

The Federal Reserve often considers cutting interest rates to stimulate economic activity when the job market weakens. Lower interest rates are generally bullish for Bitcoin and other riskier assets because they make traditional safe investments like US Treasury Notes less attractive.

The above is the detailed content of Bitcoin (BTC) Price Dip Raises Questions About Q4 Rally Potential, Analyst Benjamin Cowen Highlights Trend. For more information, please follow other related articles on the PHP Chinese website!