Top cryptocurrency analyst Benjamin Cowen predicts that altcoins are about to witness a severe correction against Bitcoin (BTC).
Cowen tells his 751,100 Twitter followers that he is closely monitoring the total market cap of altcoins (TOTAL3) against Bitcoin.
According to the crypto strategist, the chart is suggests that altcoins will experience massive capital outflows as market participants flock to BTC.
“In July 2019, altcoins had the same valuation against BTC as they do now. While timeframes don’t need to be perfectly aligned, this chart still suggests that altcoins could collectively fall another 40% against BTC. It is not called the altcoin reckoning for nothing.
Cows noteshowever, that some altcoins could rally in their Bitcoin pairs, but that shouldn’t preclude the larger trend he predicts.
“This does not mean you can have occasional bounces on ALT/BTC pairs. History teaches us that markets move stochastically. Bounces do not detract from a macro thesis on ALT/BTC pairs.”
The trader also emphasizes that the Bitcoin dominance (BTC.D) chart appears to be consolidate in preparation for another leg up.
The BTC.D index tracks how much of the total crypto market cap belongs to Bitcoin. A bullish BTC.D chart suggests that Bitcoin is occupying a larger share of the crypto markets at the expense of altcoins.
“It looks like BTC dominance will only consolidate before another step up soon.”
At the time of writing, Bitcoin is trading at $30,568, while BTC.D is hovering at 51.53%.
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