Cryptocurrency analyst Benjamin is warning that Cardano (ADA) and other altcoins are primed for losses when paired against Bitcoin (BTC).
Cowen tells his 738,700 Twitter followers that against Bitcoin, Cardano could bottom out at 0.00000400 BTC, or $0.11, a drop of 69.8% from current levels.
“I think ADA/BTC would be lucky to bottom at 0.00000800 BTC, but 0.00000400 BTC could be final support (though it could represent a higher US dollar valuation at 0.00000400 BTC than at 0.00000800 BTC).”
In a chart depicting the likely trajectory of Cardano when paired against Bitcoin, Cowen seems to suggest that the seventh-largest crypto asset by market cap could hit the final support level in the third quarter of 2023.
Cardano is trading at 0.00001326 BTC, or $0.37, at time of writing.
Citing his own experience, Cowen says that seemingly small gradual losses as altcoins depreciate against Bitcoin tend to balloon over time.
“A common response to my posts about altcoins bleeding back to BTC is ‘Hey, it’s only -2%!’
But it goes on and on.
I have lived this before. Before you know it, your altcoin is down 90-95% against BTC and you thought it was ‘holding up well’ the entire way down.”
Giving the example of Chainlink’s (LINK) performance against BTC from 2018 to 2022, the popular analyst says that an altcoin that shows bullish price action against Bitcoin during a bear market is likely to perform well when altcoins start rallying.
“Yes, for instance, LINK/BTC showed relative strength in 2018, and then did very well in 2019/2020.
So if you notice certain altcoins putting in higher lows on their BTC pairs (which most won’t be), then that could be a good sign for that altcoin during the next altcoin season.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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