Cryptocurrency analyst Benjamin Cowen shared his remarkable predictions for the coming months regarding Bitcoin (BTC) and crypto markets. Claiming that April will be of great importance for the crypto industry, Cowen stated that the changes in altcoin/Bitcoin pairs and the potential increase in Bitcoin dominance could create a significant wave of volatility in the markets.
According to Cowen, BTC dominance (BTC.D), which measures Bitcoin’s share in the crypto market, will rise and, accordingly, a period in which the general sentiment in the market may decline will begin. In this case, BTC.D’s increase indicates that altcoins are starting to lose value at a faster rate compared to Bitcoin. Cowen makes the following evaluations at this point:
“We’re getting pretty close. The range we’re looking at here is 55.3%. So above 55.3% this could be a warning sign. This could be a risk-off signal for the summer. “That’s what I’ll be looking at as we head into the summer months.”
BTC is trading at $70,048 at the time of writing.
According to Cowen, if Bitcoin dominance (BTC.D), which measures Bitcoin’s share in crypto markets, increases by just over five percent from the current level, market sentiment will turn bearish.
BTC.D rising in a bearish environment shows that altcoins are losing value faster than Bitcoin.
“We’re getting pretty close. The range we expect here is 55.3%. So a rise above 55.3% could be a warning sign. This could be a risk-off signal for the summer. That’s what I’ll be keeping an eye on as we head into the summer months.”
Bitcoin dominance level is at 49.6% at the time of writing this article.
Moreover, the widely followed analyst explained that he was in a dilemma: Will Bitcoin reach its peak at the beginning of this cycle (left-flip cycle) or will it reach its peak more than a year after the halving (normal cycle)? Benjamin Cowen thinks this will probably be determined by US monetary policy:
“Whether this will be a normal cycle peak or a left-flip peak will probably depend on what happens in the fourth quarter of this year. Here is my opinion. “If Bitcoin crashes in the fourth quarter in a recession-like environment and the unemployment rate kind of rises… if that happens and we have some kind of mild recession and then the Fed starts cracking down again, then why not have another rally in 2025?”
In a left-flipped crypto cycle, prices peak earlier than in normal four-year cycles, resulting in a shorter bull market and a longer bearish phase.
While Cowen’s analyzes shed important light on the future course of crypto markets, he emphasizes that investors should be careful when determining their strategies. In particular, it should be taken into consideration that such fluctuations in the markets present a combination of risks and opportunities for investors.
You can follow the current price movement here.
