Bitcoin Caught Between Two Fires as Correction Looms

Bitcoin's price movement has been caught between two key technical levels, according to Benjamin Cowen. He notes that BTC is currently fluctuating between the Bear Market Resistance Band above and the 200-Week Moving Average below.

Cowen warns that the gains made in July could be reversed by weakness in August and September, citing past midterm election/cycle years as a precedent. This includes the periods of 2018 and 2022 where similar rallies were followed by reversals.

He also notes that a potential correction in US stock markets (S&P 500) in August or September could be a catalyst to trigger the final cycle bottom in Bitcoin. According to Cowen, this would likely lead to a 10-20% correction in traditional stock markets.