As Bitcoin BTC has reclaimed the $85,000 mark, cryptocurrency analyst Benjamin Cowen highlights how the apex crypto recovered following its recent death cross.

What Happened: In his latest analysis published on Monday, Cowen points out that Bitcoin has rallied toward its bull market support band. The 21-week exponential moving average is currently at $86,600, and the 20-week simple moving average is at $92,500.

This pattern follows his earlier prediction that Bitcoin would likely experience a sell-off before the death cross followed by a rally afterward.

Cowen notes this pattern has occurred consistently in recent years. Bitcoin found local bottoms around death cross events in 2023, 2022, and even 2019.

The key question is whether the current rally will lead to a higher or a lower high, similar to what happened in 2019 when Bitcoin rallied after a death cross but eventually made a slightly lower low before establishing a double bottom and beginning a more substantial uptrend.

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Why It Matters: Despite the recent volatility, Cowen emphasizes that Bitcoin has maintained support above its 2024 high, showing resilience compared to traditional markets.

“The S&P and the NASDAQ essentially already tested those prior yearly highs,” he noted, pointing out that the NASDAQ even briefly dropped below its 2021 high during the recent sell-off.

For investors concerned about further downside, Cowen identifies the range between the 2021 high and the 2024 high as critical support that would need to hold for the current cycle to remain intact.

A drop below this range could signal the cycle has peaked, potentially leading to a more extended bearish period.

The analyst attributes much of the recent market uncertainty to the constantly changing tariff situation.

“For the markets, it’s not even the tariffs that are the biggest deal, it’s the uncertainty around them,” Cowen stated.

Cowen’s most important message centers on avoiding emotional trading decisions.

He warns against panic selling after significant drops and then buying back during counter-trend rallies. This can lead to poor results.

Instead, he advocates for strategic risk management. Investors should have considered reducing exposure back in January when “perfection was getting priced in” rather than panic-selling after a 30% drop, he adds.

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