Analyst Benjamin Cowen predicts Bitcoin (BTC) dominance to surge, signaling potential downfall for altcoins
Renowned cryptocurrency analyst Benjamin Cowen foresees a significant correction for altcoins against the dominant force of Bitcoin (BTC).
With a Twitter following of 751,100, Cowen shares his close monitoring of the altcoin market cap (TOTAL3) in relation to Bitcoin. His analysis indicates an imminent surge in capital outflows from altcoins as investors flock towards BTC.
Drawing a parallel between the current market situation and July 2019, Cowen highlights that altcoins are currently valued against BTC at a similar level. While exact timelines may not align perfectly, this chart strongly suggests a potential collective drop of up to 40% for altcoins against BTC. This looming event has been aptly named the ‘altcoin reckoning’.
However, Cowen acknowledges that select altcoins may experience temporary rallies in their Bitcoin pairs. Nevertheless, he emphasizes that such short-term fluctuations should not undermine the overall trend he predicts. Market history has shown stochastic movements, where intermittent bounces in ALT/BTC pairs do not contradict the larger macro thesis.
Additionally, Cowen points out the consolidating pattern in the Bitcoin dominance (BTC.D) chart, indicating an impending upward move. The BTC.D index measures the proportion of the total crypto market cap accounted for by Bitcoin. A bullish BTC.D chart signifies Bitcoin’s increasing market share at the expense of altcoins.
“It appears that BTC dominance is currently consolidating, setting the stage for an imminent upward trajectory,” Cowen suggests.”
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.