Crypto Analyst Warns of 2024 Third Quarter Bearish Trend

Crypto analyst Benjamin Cowen has warned traders about a potential bearish trend for digital assets in the third quarter of this year. According to Cowen, historical data suggests that the third quarter has been challenging for crypto markets in recent years, with similar patterns observed in 2022, 2023, and 2024. He noted that while Bitcoin reached new all-time highs, the total market capitalization has not followed suit, indicating a divergence that could signal a pullback.

Cowen's analysis is based on the observation that Bitcoin's price has shown a tendency to correct during the third quarter in recent years. He pointed out that the high from 2024, which was around $73.8K, was held as support during the pullback, allowing Bitcoin to reach new all-time highs. However, the total market cap has not reached a new high, suggesting that the market may be due for a correction.

Despite his bearish outlook, Cowen acknowledged the possibility that the market could defy historical trends and continue to rise. He mentioned that macroeconomic data, such as initial jobless claims, could introduce uncertainty into the market. While he does not view initial claims as a significant issue unless they reach 300K, the potential for higher claims could add to market volatility.

Cowen's analysis underscores the importance of considering historical patterns and macroeconomic indicators when assessing the future direction of the crypto market. While his predictions are based on past trends, he also recognizes the potential for the market to behave differently. Investors should conduct their own research and consider multiple factors before making investment decisions.