Analyst Benjamin Cowen believes that in August, certain altcoins are poised to outperform Bitcoin
$
121,769 in terms of performance. He emphasizes that the scenario may not be as favorable for Ethereum
$
4,763. Notably, Cowen points out the evident breakout above $4,700 on the ETH/USD daily chart as a significant driver of market momentum. According to his assessment, specific altcoins may gain prominence for the rest of the month, while the primary focus remains on Ethereum nearing its all-time high.
Signs of Fatigue in Ethereum
Though altcoins may show strength against Bitcoin throughout August, similar levels of performance might not be observed against Ethereum. Cowen correlates his perspective with ETH’s strong movement above $4,700 with high volume, significantly positioning itself above key moving averages. This advancement places Ethereum at the core of short-term dominance.
On another note, momentum indicators present a different picture. Ethereum’s price chart features a Relative Strength Index (RSI) entering an overbought zone, highlighting the risk of exhaustion. In contrast, Bitcoin’s structure is more balanced, with a confirmed breakout above the $121,000 region still pending, and its RSI only moderately overbought.
Expectations for Bitcoin and Altcoins in September
Cowen warns about the considerable likelihood of a correction for Bitcoin in September. If this occurs, Ethereum’s retreat from its peak could trigger a more severe wave of selling across altcoins. Historical seasonality supports this view, as September typically features volatile reaction peaks and more substantial pullbacks.
Timing plays a critical role in their path forward. Altcoin investors might experience several weeks of advantage against Bitcoin in August. However, should a significant Bitcoin correction materialize in September, it could exert downward pressure on altcoins until late October or early November, potentially driving them back to the lower regions of prior horizontal ranges.
