Riding the Bitcoin Wave: Memecoins’ Moment of Truth
In a recent video, Benjamin Cowen, a prominent crypto analyst, discussed the current market cycle and its potential impact on memecoins.
According to Cowen, Bitcoin (BTC) is currently holding steady above its 20-week simple moving average (SMA) and its 21-week exponential moving average (EMA). He refers to these two averages as the “bull market support band.”
However, Cowen suggests that this situation may change in the near future. He predicts that Bitcoin could dip below its bull market support band in either August or September. If this happens, he believes there could be a broader correction in the altcoin space, including memecoins.
The analyst highlights the need for certain memecoins to be “flushed out,” implying that there are questionable projects in the market. Cowen points out that historically, Bitcoin has managed to accomplish this by closing below the 20-week SMA and the 21-week EMA in the third quarter of the pre-halving year.
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Cowen also discusses the potential influence of the stock market on Bitcoin’s movement. He suggests that if the stock market experiences a correction, it might trigger a drop below the 20-week SMA for Bitcoin. On the other hand, if the S&P avoids a correction, Bitcoin may hold its ground.
In conclusion, Cowen anticipates that if the stock market undergoes a seasonal correction, Bitcoin will likely close below its 20-week SMA, leading to a decline in the altcoin market. This could be a turning point for memecoins’ performance against Bitcoin.
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.
