Popular cryptocurrency analyst Benjamin Cowen is warning that Bitcoin (BTC) faces a perilous moment before it can embark on a bullish run that normally comes after a halving.
Cowen tells his 784,000 YouTube subscribers that Bitcoin will plummet over the coming months ahead of the halving scheduled for next year.
According to the popular crypto analyst, Bitcoin has displayed similar behavior in the months prior to previous halvings.
“I think Bitcoin will have one more scare later this year [or] early next year at the latest. Right before the halving basically, sometime before the halving where it will test people’s resolve.
We had the same thing in 2015, we had the same thing in 2019 and 2020. I assume we’ll have the same thing again.”
Cowen says that altcoins will be more severely affected than Bitcoin in case of a correction in the market.
“In a correction scenario, the lower liquidity assets would actually get hit a lot harder than the ones that have more liquidity.
When you have corrections on Bitcoin/US dollar [pair] during the pre-halving year, liquidity in the altcoin market dries up quite substantially.
And so whenever a correction were to occur, you would likely see altcoins go down on not only their US dollar pairs but also still on their Bitcoin pairs as well.”
According to Cowen, the market is currently in a Bitcoin season where the flagship crypto asset has so far outperformed major altcoins.
“We have, in fact, gone very deep here into Bitcoin season. So much in fact that over the last 60 days Bitcoin has outperformed every other cryptocurrency that’s in the top 50 [by market cap].”
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