Bitcoin, the popular cryptocurrency, may be mirroring the behavior of the stock market, according to renowned crypto analyst Benjamin Cowen. In a recent video, Cowen suggests that Bitcoin is resembling the Russell 2000 Index, NASDAQ, and S&P 500 in terms of volatility. He points out that these three major stock indexes recently experienced a pullback after reaching their 50-day simple moving average (SMA). Cowen speculates that Bitcoin may follow a similar pattern and rise to its 50-day SMA before another sell-off occurs.

Cowen explains, “If [Bitcoin] is just a more volatile version of the stock market, it would stand to reason that if you’re going to get a correction by the S&P and the NASDAQ and the Russell to the 20-week SMA, 21-week EMA, you’re probably going to see it happen for Bitcoin. And now it has.” He further highlights that the stock market indexes have since rebounded and reached their 50-day moving average, leading to the question of where Bitcoin’s 50-day moving average stands. Cowen estimates it to be around $66,000.

The analyst suggests that if Bitcoin fails to reach this level, it could indicate weakness in the cryptocurrency market. However, if it does reach this milestone, it would provide further evidence that Bitcoin is closely linked to the stock market, albeit with higher volatility and a possible lag.

In recent news, Bitcoin reached a peak of $65,520 before settling at a current trading price of $63,711.

It’s important to note that the opinions expressed in this article are not investment advice. Investors are advised to conduct thorough research before engaging in high-risk investments involving Bitcoin or other cryptocurrencies. The Daily Hodl, where this information was sourced from, also emphasizes the need for individuals to take responsibility for their own transfers and trades, as any losses incurred are their own. The Daily Hodl does not endorse the buying or selling of cryptocurrencies and is not a financial advisor.