Altcoin Market Downturn Expected Amidst Bitcoin’s Rise, According to Analyst
A well-known cryptocurrency analyst, Benjamin Cowen, is warning investors about a potential deep correction in the altcoin markets on the horizon.
Cowen believes that historical data signals a significant downswing for altcoins.
According to Cowen, the Bitcoin dominance (BTC.D) chart currently shows strength, indicating that Bitcoin will likely continue to gain momentum as it approaches its halving event next year. This historical pattern suggests that Bitcoin’s share of the overall crypto market capitalization is increasing, potentially at the expense of altcoins.
Cowen’s analysis suggests that a bullish BTC.D chart is unfavorable for altcoins in their Bitcoin pairs. Moreover, if the dominance remains bullish during the pre-halving year, it tends to have negative implications for altcoins in their USD pairs as well, based on historical trends.
Cowen also notes that surpassing the 49% mark in Bitcoin dominance would serve as a “risk-off” signal, regardless of temporary price fluctuations. Even during a downtrend in Bitcoin’s price, the dominance level can exceed 49%. Cowen highlights the dominance rally in May-June 2022 when Bitcoin’s price declined.
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In Cowen’s view, capital is expected to shift from altcoins to Bitcoin over an extended period gradually. He suggests that the altcoin market will continue to bleed back into Bitcoin, indicating a slow process.
Cowen advises investors to maintain a Bitcoin-centric perspective until the altcoin market experiences significant setbacks in their Bitcoin pairs and the dominance surpasses the range high. According to Cowen, only then would it be prudent to consider the altcoin market seriously.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
