Towards a fall in ltcoins?  The disturbing analysis of Benjamin Cowen

Benjamin Cowen, a leading analyst followed by some 783,000 people on YouTube, sheds light on a trend that he finds concerning: a major drop in altcoins could be imminent. For him, this is not surprising: it is simply a repetition of historical cycles.

Bitcoin bullish dominance before a halving: a key indicator

To predict the evolution of the market, Benjamin Cowen relies on the Bitcoin dominance index (BTC.D) which, according to him, is very important in the analyses. This index measures the share of the total market capitalization attributed to bitcoin compared to other altcoins. According to Cowen, a bullish BTC.D chart indicates that Bitcoin is gaining strength at the expense of altcoins.

The analyst is firmly convinced that the Bitcoin dominance index will maintain its upward trajectory until the approach of the halving, a phenomenon expected for next year. As a reminder, each halving within the Bitcoin blockchain leads to a halving of the reward allocated to miners. This strategy aims to exploit the scarcity of Bitcoin to boost its value, a logic that aligns with the well-known adage: what is rare is expensive.

According to Cowen, history has shown that when the Bitcoin dominance index is up before the halving, altcoins tend to depreciate. Therefore, Cowen believes that the current environment is not proving to be favorable for the latter.

Here’s why the altcoin market should turn around

According to Cowen, if Bitcoin’s degree of supremacy crosses the 49% threshold, a trend reversal could follow in the altcoin market. He argues that even if the price of Bitcoin drops, the dominance index can continue to rise. It therefore encourages investors to prepare for a possible rise in this index beyond 49%, a scenario which could see the altcoins show signs of weakening.

Cowen foresees a turbulent future for altcoins. At a time when investors are looking to consolidate the security of their portfolios and make sound decisions, it seems crucial to heed this alert. Nevertheless, it should be remembered that the cryptocurrency market is inherently unpredictable and that, despite all the expertise possible, forecasts do not constitute unshakable guarantees.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential!

Similar Posts