Crypto analyst Benjamin Cowen says that altcoins will likely perform poorly for the remainder of 2023 based on historical patterns.
Cowen tells his 787,000 YouTube subscribers that altcoins will likely struggle to close out the year as they had in other pre-halving years.
The next Bitcoin (BTC) halving is expected in April 2024, when miner rewards are cut in half.
“The point is that regardless of what the S&P does, there’s a good chance that crypto, especially the altcoin market, is going to be struggling for the rest of the year, which is pretty common in pre-halving years for altcoins to really struggle, especially for the last half of it.
So just be aware that this is pretty normal. Even outside of recessions or recession scares, it’s not that uncommon to see this type of behavior.”
The trader also warns that while Bitcoin is up this month, BTC could close the month in the red as it had in 2019, the previous pre-halving year.
“Bitcoin has backtested the bull market support band and I know a lot of people are hopeful that it’ll close the month green and end the bad streak, but I just want people to be aware that in September 2019 we saw something very similar where it rallied for the first couple of weeks and then sort of slowly faded. Just be aware that that happened in 2019 as well and we ended up dropping the last week of the month.”
According to the trader, a number of altcoins are down this month, which appears to support his thesis that altcoins will continue to struggle for months.
“Ethereum (ETH) is down 3.31%. Cardano (ADA) is down almost 4% this month. Polkadot (DOT) is down almost 6%. Solana (SOL) is down half a percent. Avalanche (AVAX) is down this month 11%. A lot of these altcoins are down this month.
Go look at Dogecoin (DOGE). It’s down 3%. Look at Polygon (MATIC). It’s down almost 5%. XRP is slightly up about 0.16%. Last month, it was down 27% almost, compared to, say, ADA last month… down 16% or DOT last month that went down 16% or Ethereum last month… down 11%. So yes XRP is up this month. It also took a pretty big drop last month after going up. It’s basically just retracing a lot of those gains that it had after the SEC, Ripple news. Litecoin (LTC) is currently up slightly this month 1.88% after dropping almost 31% last month.”
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