Analyst Benjamin Cowen Predicts Altcoins Will Capitulate Against Bitcoin (BTC) as Market Closely Follows 2019 Cycle
- WBOYOriginal
- 2024-08-05 12:18:20700browse
A closely followed crypto strategist thinks altcoins are about to witness a market meltdown against Bitcoin (BTC).
Crypto strategist Benjamin Cowen is warning that altcoins could soon face a brutal market meltdown against Bitcoin (BTC).
Cowen, who boasts 839,200 followers on social media platform X, recently shared his analysis, suggesting that the crypto market is closely tracking the 2019 cycle.
Earlier this year, Cowen examined the total market cap of altcoins (TOTAL3) relative to Bitcoin and noted that the chart appeared to be a carbon copy of the 2019 cycle.
At the time, Cowen predicted that a major Bitcoin correction would follow the collapse of ALT/BTC pairs, leading to a scenario where altcoins capitulate against the US dollar.
Now, with the ALT/BTC chart breaking through support, the analyst believes it’s time for the market to witness a repeat of the 2019 cycle.
“We should finally see ALT/BTC pairs break down soon. Last cycle, they broke down one month before the 1st rate cut, and something similar could play out here too.”
According to CME’s FedWatch Tool, 100% of traders and investors are expecting the Federal Reserve to cut interest rates next month.
Cowen also anticipates that Bitcoin Dominance (BTC.D), which measures the percentage of the total crypto market cap that belongs to BTC, will surge to 60% before altcoins experience any relief.
“With some indicators flashing recessionary signals, it means the Fed will begin to cut rates soon, in order to try and minimize the damage and hope for a soft landing.
This means BTC dominance will top soon (probably sometime between Sept-Dec 2024).
But first, 60% dominance.”
BTC.D currently stands at 56.73%, suggesting that altcoins will have to lose a significant amount of value against Bitcoin if Cowen’s 2019 comparison holds true.
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