Analyst Benjamin Cowen warns that altcoins could correct even further based on historical priority.
In a new video, Cowen tells the 804,000 subscribers of his YouTube channel that the TOTAL3 chart, which tracks the market capitalization of all crypto assets except Bitcoin (BTC), Ethereum (ETH) and stablecoins, may be repeating a similar pattern from 2019.
“You see that in 2019 [altcoins] set this low and then a high. The same here [in 2024], a low, and then a high. And then they bled back to this low point, and they ended up holding out for a few weeks. So there’s a good chance you’ll see something like that happen again in the altcoin market, where it bleeds back to about $440 billion to $450 billion, trying to hold it and trying to figure out if the Fed has managed to manipulate a softer rate . landing or whether it is in fact a hard landing.”
Total3’s market capitalization is estimated at $520 billion at the time of writing.
Cowen also warns that ETH is forming a similar bearish pattern to 2019, which led to a broader decline in the altcoin market.
‘You could get something somewhere [ETH] just bounces around and then slowly works its way back up to the trend line [at around $1,980]. I could see something like that happening… This past cycle, ETH/USD fell back into that wedge after ETH/Bitcoin broke, and we see the same thing happening.”
Ethereum is trading at $2,508 at the time of writing, down more than 11% in the past 24 hours.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on X, Facebook And Telegram
Surf to the Daily Hodl mix
Featured image: Shutterstock/eliahinsomnia/Andy Chipus/Vladimir Sazonov