Crypto Market Analysis: Renowned Analyst Warns of Potential Altcoin Market Correction
Renowned cryptocurrency analyst Benjamin Cowen has issued a cautionary message to investors, alerting them to a potential significant correction in the altcoin markets. In a recent video update, Cowen points to historical patterns that suggest a looming downturn for altcoins.
BTC Dominance Chart Raises Warning For Altcoins:
Cowen’s Analysis: Cowen’s analysis revolves around the Bitcoin dominance (BTC.D) chart, which currently appears strong and indicates that Bitcoin (BTC) is poised to exert greater influence over the crypto markets as it inches closer to its halving event next year.
Furthermore, Cowen explains that there’s a key threshold to watch out for 49%. If the Bitcoin dominance level breaks past this point, consider it a “risk-off” signal. Historical examples, such as the May-June dominance rally in 2022, demonstrate that Bitcoin’s dominance can soar even when its price takes a temporary dip.
Cowen predicts that capital is likely to rotate from altcoins back into Bitcoin, although he acknowledges that the process may take time. He observes the gradual bleeding of altcoins back into Bitcoin and advises investors to adopt a “Bitcoin maxi” perspective until the altcoin market experiences significant losses on their Bitcoin pairs and the dominance reaches well above its range high.
Overall, with Cowen’s warning in mind, altcoin investors face a challenging period as Bitcoin’s dominance continues to strengthen. Investors may choose to adopt a “Bitcoin maxi” perspective or continue exploring opportunities within altcoins.
