Source: dailyhodl.com
Top crypto analyst Benjamin Cowen thinks a lot of memecoins still need to get flushed out by Bitcoin (BTC) in the current market cycle.
In a new YouTube video, Cowen informs his 784,000 subscribers that BTC currently remains above its 20-week simple moving average (SMA) and its 21-week exponential moving average (EMA).
Taken together, those two averages form what the crypto analyst refers to as the “bull market support band.”
Cowen predicts Bitcoin will move below its bull market support band in August or September, which he notes could lead to a widespread correction in the broader altcoin space including memecoins.
“I still think that there’s a lot of crap out there. A lot of memecoins that need to get flushed out still. Bitcoin normally is able to accomplish that by getting a weekly close below the 20-week SMA and the 21-week EMA in Q3 of the pre-halving year.
If you think this time is different… then I would watch the stock market, because if the stock market shows any signs of a correction, then normally that’s what sends Bitcoin below the 20-week (SMA).
So if the S&P does not get a correction, then perhaps we hold the line. But if it does get that seasonal correction that we tend to get most of the time in a pre-election year in the August/September timeframe, then the expectation will be that Bitcoin closes below the 20-week SMA, the altcoin market gets crushed once again on their Bitcoin pairs, and maybe it’s around that time that they finally bottom out against Bitcoin.”
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