Renowned Analyst Benjamin Cowen Advises Caution on Bitcoin for September – Shares Month's Projected Targets
A Highly Tracked Crypto Strategist Reiterates Bitcoin's Potential for a Significant Correction this Month
In his latest strategy session, analyst Benjamin Cowen, followed by an audience of 786,000 subscribers on YouTube, predicts a challenging month for Bitcoin in September.
Cowen states, 'Historically, September hasn't been favorable for cryptocurrencies, with Bitcoin averaging negative returns during this period, significantly worse than any other month.'
Based on his analysis, Cowen anticipates a potential decline of more than 10% from the current Bitcoin price in September. He elaborates, 'Considering Bitcoin's historical seasonality, recent momentum, and the recent monthly close below $27,000, it's reasonable to expect that Bitcoin may test the $23,000 mark. I believe there's a strong likelihood this could occur during September.
In a prior warning issued late last month, Cowen had expressed concerns about Bitcoin potentially dropping to $23,000 in September, drawing on historical trends.
As of the current moment, Bitcoin is trading at $25,789.
Cowen also outlines a scenario in which the broader altcoin markets may experience a resurgence. According to his analysis, a convergence of macroeconomic factors could provide a boost to the altcoin markets in the coming year.
He explains, 'Volatility typically increases during the halving year, especially as it coincides with an election year, which introduces more uncertainty. Additionally, we are in an unprecedentedly aggressive rate-hiking cycle, with the labor market expected to show signs of strain by the end of this year or early next year due to interest rate hikes.'
Cowen anticipates that if the labor market exhibits weakness while inflation declines and the possibility of a recession looms, coupled with the political pressures of an election year, there might be a push for looser monetary policies. This could lead to the return of quantitative easing during the election year, as observed in 2020, potentially revitalizing the altcoin market.
Sep 02, 2023