Bitcoin Rally Sustained by Altcoin Market Outflow: Analyst

• Benjamin Cowen, a top crypto analyst, is warning of Litecoin’s decline post-halving and updating his outlook on Bitcoin.
• He believes that the outflow of altcoin market liquidity into BTC is sustaining Bitcoin’s rally as indicated by the declining total market cap of altcoins.
• Cowen warns of a potential Bitcoin market correction in August/September due to historical price action during pre-halving years.

Warning on Litecoin Amid Halving Event

Top crypto analyst Benjamin Cowen is warning about Litecoin (LTC) after its halving event when miners’ rewards were cut in half. He tells his 754,600 Twitter followers that history shows prices tend to peak in June/July before fading into the halving, and cautions against expecting too much until the post-halving year (2025).

Outlook on Bitcoin

Cowen believes an outflow of altcoin market liquidity into BTC is sustaining Bitcoin’s rally as indicated by the declining total market cap of altcoins (TOTAL3), and an increase in Bitcoin’s dominance (BTC.D).

Market Correction Ahead?

The analyst warns of a potential Bitcoin market correction in August/September due to historical price action during pre-halving years. During the last three pre-halving years, he notes that Bitcoin fell below its bull market support band at this time; however, there is no guarantee it will happen this time around.

Preceding Rally Expected

According to Cowen’s chart, Litecoin historically rallies two months prior to a halving event before going on about a yearlong decline before rallying in its subsequent year. Currently trading for $87.46 at time of writing — down 6.8% in the last 24 hours — some investors may be expecting an impending rally ahead of Wednesday’s event.

Average Return on Investment

Cowen also points out that July’s average return on investment (ROI) for pre-halving years matched pretty closely to other Julys – leading him to believe if August plays out similarly, we could be looking at an ROI of more than -20%.