One of the crypto industry’s most prominent strategists is standing firm on his prediction that Bitcoin (BTC) will see a significant corrective move this month.
Benjamin Cowen, an analyst with 786,000 YouTube followers, recently posted a new strategy session in which he predicted that Bitcoin will have negative returns in the month of September.
The cryptocurrency market often does poorly in September. You can see that September has the worst monthly average for Bitcoin of any month.
Cowen predicts that Bitcoin’s price might fall by more than 10% this month. It would at least make sense that Bitcoin will challenge $23,000 given its seasonality, its momentum, and the fact that we recently had a monthly closing below [$27,000].
There’s a decent possibility it’ll occur in September. Based on past performance, Cowen warned late last month that Bitcoin’s value may fall below $23,000 in September.
Cowen also describes a scenario in which alternative coin markets may revive. Next year, the expert predicts, the altcoin markets may get a boost from a convergence of economic tailwinds.
Since the half year is also an election year, volatility often increases again. Keep in mind that there is far greater unpredictability during election years.
For this reason, there may be political motivation to return to looser monetary policy if the labor market begins to show signs of weakness at the same time that inflation is coming down (perhaps because we are entering a recession). This is because, in an election year, incumbents will want to do whatever they can to try to remain in power. So that we don’t keep raising prices and driving all these businesses into bankruptcy.
Therefore, quantitative easing will certainly return in some form in the election year, just as we saw in 2020. My hunch tells me that. And when it does, the altcoin market should recover in a natural progression.
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