Altcoins poised for demise as Bitcoin (BTC) dominance gears up for a surge: analyst Benjamin Cowen
Leading cryptocurrency analyst Benjamin Cowen predicts that altcoins are on the verge of a sharp correction against Bitcoin (BTC).
Cowen shares with his 751,100 Twitter followers that he closely monitors the total market cap of altcoins (TOTAL3) versus Bitcoin.
According to the crypto strategist, the chart suggests that altcoins will see massive capital outflows as market participants flock to BTC.
“In July 2019, altcoins had the same valuation against BTC as they do today. While the timeframes don’t have to match perfectly, this chart still suggests that altcoins could fall another 40% overall against BTC. It’s not called altcoin settlement for nothing.”
Source: Benjamin Cowen/Twitter
However, Cowen notes that some altcoins could rally their bitcoin pairs, but that shouldn’t discount the larger trend he predicted.
“That doesn’t mean ALT/BTC pairs can’t see occasional bounces. History tells us that markets move stochastically. Bounces don’t discount a macro thesis on ALT/BTC pairs.”
The trader also notes that the Bitcoin dominance chart (BTC.D) appears to be consolidating in preparation for another surge.
The BTC.D Index tracks how much of the total crypto market cap is Bitcoin. A bullish BTC.D chart suggests Bitcoin is capturing a larger share of crypto markets at the expense of altcoins.
“It looks like BTC’s dominance is about to solidify before bouncing back up anytime soon.”
Source: Benjamin Cowen/Twitter
At the time of writing, Bitcoin is trading at $30,568 while BTC.D is hovering at 51.53%.
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