A widely followed analyst says the real “altcoin reckoning” is still on the horizon despite the latest crypto correction.
In a new video update, crypto strategist Benjamin Cowen tells are 783,000 YouTube subscribers that those who believe altcoins cannot fall further after their deep retracements of the past year should think again.
According to Cowen, the real altcoin capitulation is still coming.
“The reckoning of altcoins is serious business. You shouldn’t laugh at it just because you think it’s your altcoins [are] already down 80% [and they] can’t keep falling.
The altcoin reckoning can go on and on, and only after the (Bitcoin) dominance range is broken high will altcoins even reach the penultimate stage of the altcoin reckoning, which hasn’t even happened yet.
Earlier this month, Cowen said he is closely monitoring the Bitcoin Dominance (BTC.D) chart. According to Cowen, breaking the crypto king’s dominance level above 49% would be a “risk-off” signal.
The Bitcoin Dominance 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.
At the time of writing, BTC.D is hovering above 49%.
Cowen goes on to say that he believes the altcoin reckoning will not end until the Ethereum/Bitcoin (ETH/BTC) trading pair collapses.
“So where does it end? Well, for some it will never happen. For others it will and where I think it ends, I’ve been clear about that. I think it ends with the collapse of the Ethereum/Bitcoin valuation. That’s what I think…
i think the [ETH/BTC valuation] will collapse and probably come back down, maybe bounce back up and then dive and then.
When will it happen? Don’t know. I would have told you five months ago, but there is a lot more resilience in Ethereum than I thought there would be, (but that) doesn’t mean it won’t break again eventually.
At the time of writing, ETH/BTC is trading at 0.067 BTC ($1,728).
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