Bitcoin Stalls Around $78,000: Here's the Key Level to Watch

Bitcoin (CRYPTO: BTC) has stalled near a key level, which could determine whether the bear market is officially over.

Where Is BTC’s ‘Line In The Sand?‘

According to cryptocurrency analyst Benjamin Cowen, Bitcoin’s 50-week moving average is the key level to break before a potential new bull cycle.

Cowen sees similarities between the current rally and 2018, when Bitcoin rallied more than 40% from its summer low before stalling at the 50-week MA.

Cowen stressed that stalling does not necessarily mean rejection, as previous bull-market transitions spent weeks around the level before breaking higher.

Sustained weekly closes above the 50-week MA would make Cowen abandon his bearish bias.

Until then, he believes historical precedent leaves the door open for another decline later this year.

Could Bitcoin See One More Q4 Low?

Cowen also noted that during the previous three cycles, Bitcoin’s final bear-market bottom arrived after the U.S. midterm elections.

Another reason for his skepticism is that Bitcoin’s decisive recoveries above the 50-week MA following previous bear markets occurred during pre-halving years rather than midterm years.

Still, Cowen isn’t recommending investors wait indefinitely for another crash.