A closely watched crypto strategist is doubling down on his call that Bitcoin (BTC) is likely to witness a profound corrective move this month.
In a new strategy session, says analyst Benjamin Cowen tells its 786,000 YouTube subscribers know Bitcoin is likely to post a negative return in September.
“September is usually not a great month for crypto. Bitcoin – as you can see – is negative on average in September, much worse in the long run than any other month.”
According to Cowen, Bitcoin could see a decline of more than 10% from current levels this month.
“Given Bitcoin’s seasonality, and given the momentum, and the fact that we just had a monthly close below [$27,000]At the very least, it would make sense that Bitcoin is likely to test $23,000.
Probably, I think, there’s a good chance it will happen in September.”
Late last month, Cowen warned that Bitcoin could drop to $23,000 in September based on historical priority.
At the time of writing, Bitcoin is trading at $25,789
Cowen also outlines a scenario where the altcoin markets in general could bounce back. According to the analyst, a confluence of macroeconomic winds could boost altcoin markets next year.
“Vthe olatility normally increases again in the halyears because it’s a election year too. aand think of the elections jears bring much more uncertainty.
In addition, we are in a cycle of rate hikes that we have never seen before – so aggressively. And at this rate, we’re probably going to see the labor market start to feel the effects of all these rate hikes by the end of this year, early next year.
So if the job market starts to show signs of weakness at the same time that inflation is coming down, because we might be going into a recession, and we also have an election year where the incumbents will want to do what they can to try and stay in power , there will likely be some political pressure to return to looser monetary policy. So that we don’t go up forever and see all these companies go out of business.
So sometime in the election year, just as we’ve seen in 2020, we’ll probably see quantitative easing return in some form. That is my guess. aAnd if it does come back, you would normally expect the altcoin market to do well again.”
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