Cryptocurrency analyst Benjamin Cowen has warned that altcoins, especially Cardano, will lose value in the Bitcoin (BTC) trading pair.
Cowen said on Twitter that Cardano could drop to 0.00000400 BTC (corresponding to $0.11), a 69.8% drop from current levels against Bitcoin. told.
“I think ADA/BTC would be lucky if it bottomed at 0.00000800 BTC, but 0.00000400 BTC could be the ultimate support (though 0.00000400 BTC could represent a higher dollar value than 0.00000800 BTC).”
The analyst shared the chart below showing the value of Cardano against the leading crypto Bitcoin. Based on this chart, Cowen seems to suggest that the seventh-largest crypto-asset by market cap could reach its final support level in the third quarter of 2023.
“ADA/BTC”
At press time, Cardano is trading at 0.00001326 BTC, or $0.37.
Drawing on his past experience, Cowen adds that seemingly small gradual losses tend to balloon over time as altcoins depreciate against Bitcoin.
“A common response to my posts where I said altcoins were bleeding against BTC was, ‘Hey, it’s only down 2%!’
But the decline continues.
I’ve had this before. Before you know it, your altcoin is down 90-95% against BTC and you thought it was ‘good’ the whole time.”
To reinforce his bearish forecast, the analyst pointed to the performance of Chainlink (LINK) against BTC from 2018 to 2022. The crypto analyst says that an altcoin that is bullish against Bitcoin during a bear market will likely perform well once altcoins start to recover.
“Yes, for example, LINK/BTC showed relative strength in 2018 and then performed very well in 2019/2020. So if you notice that certain altcoins are making higher lows in BTC pairs (many won’t), that could be a good sign for that altcoin in the next altcoin season.”
You can follow the current price action here.