Top cryptocurrency analyst Benjamin Cowen predicts that altcoins are on the verge of witnessing a severe correction against Bitcoin (BTC).
Cowen tells his 751,100 Twitter followers that he’s keeping a close watch on the total market cap of altcoins (TOTAL3) against Bitcoin.
According to the crypto strategist, the chart suggests that altcoins will witness massive capital outflows as market participants flock to BTC.
“In July 2019, altcoins were at the same valuation against BTC that they are today. While timeframes do not have to align perfectly, this chart still suggests that altcoins could collectively drop another 40% against BTC. It’s called the altcoin reckoning for a reason.”
Cowen notes, however, that some altcoins could rally in their Bitcoin pairs, but that shouldn’t discount the larger trend he is predicting.
“This does not mean you cannot have occasional bounces on ALT/BTC pairs. History shows us that markets move stochastically. Bounces do not discount a macro thesis on ALT/BTC pairs.”
The trader also highlights that the Bitcoin dominance (BTC.D) chart appears to be consolidating 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 taking a larger share of the crypto markets at the expense of altcoins.
“Looks like BTC dominance is just consolidating before another move higher soon.”
At time of writing Bitcoin is trading for $30,568 while BTC.D hovers at 51.53%.
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