• Top crypto analyst Benjamin Cowen believes that there are still many memecoins that need to be flushed out by Bitcoin.
• Cowen notes that BTC currently remains above its 20-week simple moving average (SMA) and its 21-week exponential moving average (EMA).
• He predicts Bitcoin will move below its bull market support band in August or September, which could lead to a widespread correction in the altcoin space including memecoins.
Bitcoin Likely to Flush Out Memecoins
Top crypto analyst Benjamin Cowen believes a lot of memecoins still need to get flushed out by Bitcoin (BTC) in the current market cycle. This is because BTC currently remains above its 20-week simple moving average (SMA) and its 21-week exponential moving average (EMA). These two averages form what is known as the “bull market support band”.
Likely Market Correction on the Horizon
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. He suggests keeping an eye on stock markets as they might indicate if this time is different from previous years, but normally seasonal corrections occur during pre-election years around August/September which would lead to a drop in BTC prices beneath the 20-week SMA.
Memecoins have become popular amongst investors due to their relatively low cost and potential for high returns, however it appears that their popularity may be short lived as they face increasing competition from established cryptocurrencies such as Bitcoin. It will be interesting to see how much of an impact Bitcoin’s potential pullback has on them in the coming months.
While it remains unclear whether or not this time is different for cryptocurrency markets, it seems likely that there will be some sort of correction soon given historical trends and Cowen’s analysis. If so, then this could create an opportunity for those who are looking for cheap entry points into promising projects before they take off again once the markets stabilize.
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