According to Cowen's outlook, Bitcoin is likely to avoid a more significant retracement as long as it stays above this band. The 20-week simple moving average (SMA) and the 21-week exponential moving average make up the bull market support band, which is an important level that represents the overall sentiment of the market.
A wick below it last week, but #BTC closed the weekly candle slightly above the bull market support band https://t.co/PbcOtIaIES pic.twitter.com/KgLGEADfFe— Benjamin Cowen (@intocryptoverse) October 7, 2024
A further risk that could affect risk assets, including cryptocurrencies, is the possibility of the Federal Reserve tightening its monetary policy. To sum up, even though Benjamin Cowen's forecast offers a bullish viewpoint, based on past performance around the bull market support band, it is crucial to exercise caution.
For a more convincing rally, Bitcoin must hold its current position above the support band, while the market continues to face external pressures.