Altcoins Likely to Implode, Historical Evidence Indicates: Analyst

Altcoins Likely to Implode, Historical Evidence Indicates: Analyst
A prominent crypto strategist, Benjamin Cowen, is sounding the alarm for investors, cautioning them about a potential significant downturn in the altcoin markets. In a recent video addressed to his extensive following of 783,000 YouTube subscribers, Cowen highlights historical patterns that suggest a looming deep correction for altcoins.

As per Cowen's analysis, the Bitcoin dominance (BTC.D) chart is currently displaying robust indicators. Taking into account historical data, Cowen predicts a continued bullish trend as Bitcoin (BTC) approaches its halving event scheduled for next year.


The Bitcoin dominance index serves as a measure of the proportion of the overall crypto market capitalization that belongs to Bitcoin. A bullish BTC.D chart indicates that Bitcoin is gaining a larger slice of the crypto market, potentially at the expense of altcoins.


According to the analyst, there is a belief that the dominance is fundamentally bullish, and a bullish dominance is not favorable for altcoins in their Bitcoin pairs. Furthermore, if the dominance remains bullish in the pre-halving year, it historically indicates a negative outlook for altcoins in their USD pairs as well. It is important to note that historical patterns do not guarantee future outcomes, but they serve as an informative reference.


In continuation, Cowen expresses his viewpoint that if the dominance level of the crypto king, Bitcoin, surpasses 49%, it would serve as a "risk-off" indication. He further suggests that Bitcoin's dominance might continue to increase, even in the event of a price decline.


According to Cowen, there is a possibility of holding the line and experiencing another upward push. However, in such a scenario, the speaker advises not to focus solely on the price, but rather to pay attention to the sustained breakthrough of the dominance level reaching 49%. This, in the speaker's perspective, would serve as the signal for adopting a risk-off approach.


In addition, he stated it is anticipated that the altcoin market will gradually lose value and flow back towards Bitcoin over an extended duration. Therefore, the speaker suggests adopting a Bitcoin-centric approach during this period, until the altcoin market experiences significant depreciation in their Bitcoin pairs, with the dominance level significantly surpassing the upper range. Only at that point, in the speaker's opinion, does it become reasonable to seriously contemplate the altcoin market.

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Disclaimer:
This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.