Benjamin Cowen thinks Bitcoin is in a testing phase right now. It has been drifting lower and will likely retest its “bull market support band” (a mix of key weekly moving averages) in September. Historically, Bitcoin often finds a local bottom in September or early October before moving higher again.
The big question: will the low happen at the support band or at the deeper 50-week moving average? If Bitcoin holds support, that’s a healthier sign. If it falls to the 50-week line, altcoins may get hit harder as people shift back into Bitcoin.
Cowen also expects Bitcoin dominance (its share of the total crypto market) to rise in September and October. This usually happens when money flows out of altcoins and back into Bitcoin, whether during a rally or a dip.
In short - September could be shaky, but Cowen believes that once Bitcoin finds its low, it may set up for a strong move higher later in the year. The key levels to watch are the bull market support band and the 50-week moving average.
