CoinSpeech team collected the most important takeaways from Benjamin Cowen’s recent appearance, where he delved into the latest developments and trends in the Bitcoin market. You can find Benjamin Cowen’s new video below.
Market’s Recent Pause
This past week, Bitcoin saw a minor drop of about 1%. As Cowen noted, “not a large move all things considered,” and the altcoin market mirrored this trend with a 1.6% dip. This stagnation aligns with Cowen’s forecast from the previous week’s update. According to Cowen, such pauses are common before significant labor market data releases at the beginning of the month.
European Central Bank Rate Cuts
The European Central Bank (ECB) is expected to cut rates soon, a shift that offers important insights into the global economic cycle. Cowen highlighted that other economies might start cutting rates before the U.S., as he mentioned, “the economy in the United States has been so much stronger.”
Labor Market Data Impact
Labor market data, expected this week, could define Bitcoin’s short-term direction. Cowen emphasized the significance, stating, “This is the week where that labor market data will come in.” Historically, the market has shown hesitation into the first of the month, waiting for labor data to influence its decision-making.
Bitcoin’s Price Action
Analyzing the cryptocurrency’s price action, Cowen discussed the behavior of Bitcoin around its bull market support band. He pointed out, “you go down to the bullmark sport band on the first test of it, you get a bounce back up.” Comparing scenarios from past weeks, Cowen anticipates whether Bitcoin will resolve into a lower high or a higher high.
Altcoin Market Struggles
Cowen observed that all Bitcoin pairs are struggling, noting that they are still below their bull market support band. “If you look back at 2019 going into these rate cuts… it happened in June,” said Cowen, hinting at seasonal patterns where altcoin pairs broke down around this time in the past.
Comparisons to 2019
Drawing parallels to 2019, Cowen detailed how Bitcoin’s rally impacted altcoin pairs. “Bitcoin rallied up, and all Bitcoin pairs broke down,” he said. This historical context is used to predict possible outcomes for the current market scenario, especially under the influence of high interest rates and quantitative tightening.
Bitcoin Dominance
Cowen elaborated on Bitcoin dominance and its performance relative to altcoins. He mentioned, “Bitcoin dominance still goes up because if it breaks out, Bitcoin dominance also went up,” referring to past patterns. Analyzing the current trends, he concluded that Bitcoin is likely to maintain its upper hand.
What’s Next?
As the labor market data and potential ECB rate cuts approach, the critical question remains: “Does Bitcoin sell off and go back to the bull market support band?” or does it follow the example set by Nvidia and achieve a new high?