Crypto analyst Benjamin Cowen says historical patterns Bitcoin He stated that the recent rally in price may be a pattern that will lead to a correction before the real bull market begins.
According to Cowen, the reason BTC is currently rising is because new capital is entering the space and driving up prices.
The analyst argues that Bitcoin is rising because investors are converting altcoins that are further outside the risk curve into BTC. Cowen believes that eventually liquidity from altcoins will decrease and BTC will no longer have the buying pressure to continue its rally.
Bitcoin usually experiences a fairly significant sell-off some time before the halving. Maybe it will happen after the halving, I don’t know.
NEWS CONTINUES BELOWBut I think it’s because liquidity has disappeared. So I think the reason Bitcoin is going up right now is not because of new money coming into the space, because if new money were to come into the space… wouldn’t the total market cap go up?
According to the analyst, on the contrary, there is no increase in the total market value.
However, the total market capitalization remained the same. The reason why Bitcoin is rising is because people are converting their altcoins to Bitcoin and therefore Bitcoin dominance is increasing. But the problem is that at some point all liquidity in the altcoin market dried up, so there was no liquidity left in altcoins to buy Bitcoin.
The analyst concluded by stating that there will no longer be a bid for Bitcoin and then the price will drop. According to Cowen, BTC is currently crushing the altcoin market, and from now on it will actually be possible for altcoins to outperform over the next three to six months.