Bitcoin’s Final Test: Analyst Warns of Impending Scare
Renowned cryptocurrency analyst Benjamin Cowen cautions about the critical phase Bitcoin (BTC) must undergo before experiencing a bullish surge typically seen after a halving event.
Addressing his YouTube followers, Cowen predicts a forthcoming decline in Bitcoin’s value in the months leading up to next year’s scheduled halving.
The esteemed crypto analyst highlights similarities in Bitcoin’s behavior preceding previous halvings, indicating a potentially unsettling period.
“I anticipate another bout of unease either later this year or, at the latest, early next year, just before the halving. It will likely challenge the conviction of market participants.”
Similar trends were observed in 2015, 2019, and 2020, leading Cowen to anticipate a recurrence.
Cowen asserts that altcoins would be more significantly impacted than Bitcoin regarding market corrections.
“In the event of a correction, assets with lower liquidity will suffer more compared to those with higher liquidity. Historical data shows that altcoin market liquidity diminishes significantly during the pre-halving year during Bitcoin/US dollar corrections. Consequently, altcoins are likely to decline not only against the US dollar but also against Bitcoin.”
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Cowen observes that the current market favors Bitcoin over major altcoins, marking a pronounced Bitcoin season.
“We are currently deep into Bitcoin season. In fact, over the past 60 days, Bitcoin has outperformed every other cryptocurrency in the top 50 by market capitalization.”
At the time of writing BTC is trading at $28,880 after a 2.25% drop in the past 24 hours and has a trading volume of over $16 billion.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
