As September approaches in the cryptocurrency world, expectations also rise. Well-known crypto strategist and analyst Benjamin Cowen, who has a significant YouTube following, reiterates his prediction that Bitcoin (BTC) is poised for a significant 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 a decline 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 difficult month for cryptocurrencies, with Bitcoin in particular often experiencing negative returns during this period. “September tends to not be a great month for crypto. “As you can see, Bitcoin has a much worse average negative return in September than in other months,” he said.
Based on his analysis, Cowen suggests that Bitcoin could witness a decline of over 10% from its current levels during September. He backs up his claim by considering Bitcoin’s seasonality, momentum, and recent monthly close below the $27,000 level. “Given Bitcoin’s seasonality, momentum, and the fact that we recently had a monthly 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 there’s a good chance this will happen in September,” he said.
He made a similar statement last month.
Cowen’s warning late last month echoes a similar sentiment. As we reported as Kriptokoin.com, the analyst was drawing on historical examples by emphasizing that Bitcoin could fall to $23,000 in September. While the possibility of a Bitcoin correction is high, Cowen also outlined a scenario in which altcoin markets could revive. Cowen pointed out that macroeconomic factors may come together next year to bring new vitality to the altcoin markets.
“Volatility normally rises again in the halving year because it is also an election year. Remember that election years bring a lot more uncertainty,” Cowen explained. He also noted the ongoing rate hike cycle and potential labor market impacts, suggesting that these factors could lead to looser monetary policies in an election year, potentially benefiting the altcoin market.
Another analyst expects another decline
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 could impact the broader cryptocurrency landscape. In a related development, Bitcoin’s recent price action has shown signs of fragility. On-chain data shows that the cryptocurrency is teetering around a critical support level, which if breached could trigger a further drop of 10% to 15% from its current value. According to Ali Charts, Bitcoin could potentially drop to as low as $23,340 from its current level of $25,800.
High volatility has characterized Bitcoin’s last seven-day trading range, oscillating between a low of $25,680 and a 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 BlackRock spot Bitcoin ETF application. The SEC’s recent decision to delay several spot Bitcoin ETF applications, including BlackRock’s, has the crypto market eagerly awaiting further regulatory developments.
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