In the world of cryptocurrencies, expectations are rising as September approaches. Well-known crypto strategist and analyst Benjamin Cowen, a prominent YouTube follower, reiterates his prediction that Bitcoin (BTC) is preparing for a major corrective move this month. With Bitcoin currently trading at $25,789, Cowen’s prediction is causing waves of concern and curiosity among crypto enthusiasts. Here are the details…
Cowen expects drop for Bitcoin
Cowen, who has 786,000 YouTube subscribers, recently shared his views in a strategy session. He emphasized that September has historically tended to be a tough month for cryptocurrencies, and Bitcoin in particular has often experienced negative returns during this period. “September tends not to be a great month for crypto. As you can see, Bitcoin is delivering negative returns in September with a much worse average compared to other months,” he said.
Based on his analysis, Cowen suggests that Bitcoin could witness a drop of over 10% from its current levels throughout September. He backs up this claim by considering Bitcoin’s seasonality, momentum, and recent monthly close below the $27,000 level. “Given the seasonality, momentum, and the fact that we recently had a one-month close below $27,000, it would make sense that there is at least a good chance for Bitcoin to test $23,000,” the analyst said. “I think it’s very likely to happen in September,” he said.
He made a similar statement last month.
Cowen’s warning late last month echoes a similar sentiment. cryptocoin.com As we reported, the analyst was based on historical examples, emphasizing that Bitcoin could drop to $ 23,000 in September. While the possibility of a Bitcoin correction is high, Cowen also outlined a scenario where altcoin markets could resurrect. Cowen pointed out that macroeconomic factors could come together that could bring new vitality to the altcoin markets in the coming year.
“Volatility normally rises again in the halving year because this is also an election year. Remember that election years bring a lot more uncertainty,” Cowen explained. He also pointed to the ongoing cycle of rate hikes and potential labor market implications, suggesting that these factors could lead to looser monetary policies in an election year and potentially benefit the altcoin market.
Another analyst expects a drop
As the crypto community closely monitors Bitcoin’s performance in September, we’ll see if Cowen’s predictions come true and how these potential price movements can affect the broader cryptocurrency landscape. In a related development, Bitcoin’s recent price action showed signs of vulnerability. On-chain data shows that the cryptocurrency is swinging around a critical support level, which could trigger another 10% to 15% drop from its current value if this level is breached. According to Ali Charts, Bitcoin could potentially drop from the current $25,800 level to $23,340.
High volatility has characterized Bitcoin’s last seven-day trading range, fluctuating between the low of $25,680 and the high of $28,130. Investors are bracing themselves for another wave of volatility in mid-October 2023 as the U.S. Securities and Exchange Commission (SEC) approaches its next deadline for the BlackRock spot Bitcoin ETF application. The SEC’s recent decision to delay multiple spot Bitcoin ETF filings, including BlackRock’s, has the crypto market eagerly awaiting further regulatory developments.
