In the last couple of days, Bitcoin has seen a massive downtrend bottoming at $38,000, and then the flagship currency formed a base above $38,000 before starting a recovery phase. Bitcoin even managed to break the $38,400 and $38,500 resistance zone.
However, the currency has slightly slipped below $38,500 and is now trading at $38,405 with a surge of 1.72% over the last 24hrs and is down by more than 5% in the last seven days. The world’s first crypto by market cap needs to surge above $39,600 to conquer the $40,000 level.
Bitcoin To Outperform Nasdaq
Benjamin Cowen, a well-known crypto analyst, and strategist is of the opinion that for a few months the connection between tech stocks and Bitcoin (BTC) is surprisingly positive
In a recent video, Benjamin is seen advising his 729,000 YouTube subscribers that Bitcoin is currently below the bull-market support band against the dollar.
This bull-market support band is basically a technical indicator that includes the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA).
Nevertheless, the scenario between Bitcoin’s chart and Nasdaq is different. To prove this point, Benjamin Cowen explains as follows
“The valuation of Bitcoin against the Nasdaq actually shows it’s above some of these shorter-term moving averages. In fact, it seems like the Bitcoin valuation against the Nasdaq is sort of building up to something. The window that it’s moving between is getting smaller as time goes on… If you extend this out you can see that they will ultimately converge by the beginning of 2023.”
Also, the strategist takes into account that the flagship currency has been forming higher lows and lower highs against the Nasdaq since late 2020.
According to Benjamin Cowen, the chances of Bitcoin performing bullishly against Nasdaq is more than downtrending.