Well-known cryptocurrency analyst Benjamin Cowen claimed that altcoins could witness a serious correction against Bitcoin (BTC). According to Cowen’s worrying analysis, the future of cryptocurrencies other than Bitcoin may not be very bright. Here are the details.
In making his frightening prediction, Cowen examined the total market cap (TOTAL3) of altcoins against Bitcoin. According to the crypto strategist, the indicator in question will see altcoins witness massive capital outflows as market participants flock to BTC. is showing.
“In July 2019, altcoins were the same as their current values against BTC. While the timeframes don’t have to align perfectly, this chart shows that altcoins could collectively drop another 40% against BTC.”
However, Cowen adds that some altcoins may rally against Bitcoin, but this will not change the overall picture.
“This does not mean that ALTCOIN/BTC pairs cannot bounce occasionally. History shows us that markets move stochastically. Jumps do not invalidate a macro thesis in ALTCOIN/BTC pairs.”
The analyst also highlights that the Bitcoin dominance (BTC.D) chart is consolidating in preparation for another rise. The BTC.D index shows how much of the total crypto market cap is owned by Bitcoin. A rising BTC.D chart is a sign that Bitcoin has a larger share in the crypto markets.
“Looks like BTC dominance is consolidating before hitting a new high.”
At press time, Bitcoin is trading at $30,568, while BTC.D is hovering around 51.53%.
You can follow the current price action here.