Cowen Warns Bitcoin May Be Due for Next Decline
Crypto analyst Benjamin Cowen has identified a pattern in Bitcoin's price action that may indicate another correction is on the horizon. According to Cowen, July often acts as relief for Bitcoin after sharp declines in June, with the cryptocurrency staging a rally before renewed selling pressure emerges.
Cowen pointed to similar patterns in 2018 and 2022, when Bitcoin rebounded from June lows before declining in August and September. In 2022, Bitcoin gained nearly 20% in July before falling in each of the following two months.
The analyst noted that Bitcoin's current rally could extend into early or mid-August, but history suggests selling pressure will likely intensify later in the quarter. Cowen also highlighted rising U.S. Treasury yields as a potential headwind for Bitcoin, comparing the current environment to 2023 when Bitcoin weakened after July as the 10-year Treasury yield climbed.