Crypto Guru Signals Bitcoin Surge, Warns Ethereum Faces Uphill Battle
Recently, crypto analyst Benjamin Cowen cautioned about the performance of Ethereum (ETH) in comparison to Bitcoin (BTC) in the near future.
Cowen anticipates a prolonged period during which Ethereum may fall behind Bitcoin, attributing this prediction to the expected continuous rise in Bitcoin dominance (BTC.D). Bitcoin dominance, which measures the proportion of the total market capitalization held by Bitcoin, serves as an indicator for Cowen. A bullish BTC.D chart implies that alternative cryptocurrencies, including Ethereum, are likely to exhibit smaller gains compared to Bitcoin.
According to Cowen, his crypto portfolio has been predominantly invested in Bitcoin for the past few years due to his belief that it will outperform a substantial portion of the market. He emphasizes that this doesn’t apply to the entire market but to a significant portion, hence the increasing dominance.
Discussing Ethereum’s performance against Bitcoin (ETH/BTC), Cowen highlights substantial resistance faced by ETH/BTC after a downward break below a trendline and subsequent attempts to retest it.
Cowen points out the impact of Bitcoin rallies on Ether-Bitcoin, stating, “It’s Bitcoin rallies that break Ether-Bitcoin down.” He observes a breakdown in the ETH/BTC pair and draws parallels to a similar pattern observed in the previous market cycle.
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The analyst notes that the current scenario involves a potential backtesting of a trendline that previously served as support in October 2022, March 2023, June 2023, and September 2023. However, in November 2023, the pair is testing this trendline from beneath, posing a significant resistance level.
Even if ETH/BTC manages to move above the trendline, Cowen warns of numerous resistance levels that the pair must overcome to convincingly reverse the existing downtrend. He emphasizes the substantial challenge, stating, “There’s all these resistance levels… It’s got a lot to get through in order to prove something.”
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.
