Bitcoin Stuck Between Two Fires, Analyst Warns of Imminent Correction

Bitcoin's price has been fluctuating between two key technical levels, according to Benjamin Cowen, a cryptocurrency analyst. The current market structure bears similarities to the 2018 bear market, with Bitcoin caught in a 'less volatile' version of its predecessor.

Cowen noted that upward attempts are being blocked by the Bear Market Resistance Band above, while downward dips find support from the 200-week moving average below. This dynamic is consistent with the four-year cyclical pattern observed in the market.

The analyst warned that the recent gains made in July could be reversed by weakness in August and September, mirroring past midterm election/cycle years (2018 and 2022). A correction in traditional stock markets may be necessary for Bitcoin to reach its ultimate bottom.