Top Crypto Analyst Benjamin Cowen Predicts Memecoins May Get Flushed Out by Bitcoin in Upcoming Market Cycle
In a recent YouTube video, Benjamin Cowen, a renowned crypto analyst with a substantial following of 784,000 subscribers, shares his insights on the current state of the cryptocurrency market. He highlights that Bitcoin (BTC) is currently showing strength above its 20-week simple moving average (SMA) and its 21-week exponential moving average (EMA), forming what he refers to as the “bull market support band.” Cowen predicts potential downward movement for Bitcoin in the near future, which could lead to a broader correction affecting altcoins, particularly memecoins.
Bitcoin’s Crucial Support Levels:
According to Cowen, BTC’s ability to stay above the bull market support band has significant implications for the rest of the crypto market. Historically, Bitcoin has acted as a force to flush out weaker projects, including memecoins, when it closes below the 20-week SMA and the 21-week EMA in the third quarter of pre-halving years. The analyst emphasizes that there are still questionable memecoins that might need to be cleared out to pave the way for a healthier market.
Potential Market Correction Trigger:
Cowen also suggests keeping an eye on the traditional stock market, as it could play a role in Bitcoin’s future movements. Should the S&P experience a correction, it often influences Bitcoin’s performance, pushing it below its critical support levels. However, if the stock market remains stable, Bitcoin might hold its ground against the bearish pressure, potentially sparing the altcoin market from a severe downturn.
Timing and Impact on Altcoins:
The analyst speculates that if a correction occurs in the stock market during the August/September timeframe, it could coincide with Bitcoin closing below its support band. As a result, altcoins could suffer considerable losses against Bitcoin pairs, leading to a potential bottoming out period for these assets. This scenario could be an opportune moment for investors looking to enter the altcoin market or reposition their portfolios.
As the cryptocurrency market remains highly dynamic and influenced by various factors, it’s essential to stay informed about experts’ insights like Benjamin Cowen’s. His analysis suggests that the fate of memecoins and other altcoins might be intertwined with Bitcoin’s performance. Investors and traders should closely monitor the market developments and consider the potential impact of traditional financial markets on the cryptocurrency landscape. As always, exercising caution and conducting thorough research are crucial in navigating the ever-evolving crypto space.
Read Also: Terraform Labs Permitted to Subpoena FTX Entities Regarding UST Failure
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
Comments are closed.