Analyst Benjamin Cowen has warned that Bitcoin could witness a deep corrective move this month. In a recent strategy session, analyst Benjamin Cowen says that Bitcoin will likely yield negative returns in September.
September tends not to be a great month for crypto. As you can see, Bitcoin provides negative returns in September with a much worse average than other months. According to Cowen; Bitcoin price could witness a drop of over 10 percent from current levels this month.
Given Bitcoin’s seasonality, momentum, and the fact that it’s closing a month below $27,000, it would at least make sense that there’s a chance Bitcoin could test $23,000. I think this is most likely to happen in September.
Cowen also outlines a scenario where altcoin markets in general could resurrect. According to the analyst, the combination of macro headwinds could give altcoin markets a chance next year.
Volatility normally rises again in the halving year because that year is also an election year. And remember that election years bring a lot more uncertainty. We’re also in a rate hike cycle we’ve never seen before – this aggressive. At this rate, we will begin to see the visible effects of the labor market and all these interest rate hikes at the end of this year and early next year.
So if the labor market starts to show signs of weakness as inflation falls, because maybe we’re entering a recession, and at the same time we have an election year when those in power will want to do their best to stay in power, there will likely be some political pressure to return to a looser monetary policy. Just so we don’t keep giving raises forever and watch all these companies go bankrupt. So at some point in the election year, we’re going to see QE return somehow, just as we saw it in 2020. My guess is this. And when it returns, you would normally expect the altcoin market to start performing well again.