A widely followed crypto analyst is issuing a warning that the altcoin market is about to implode against Bitcoin (BTC).
In a new video update, crypto strategist Benjamin Cowen tells his 800,000 YouTube subscribers that the TOTAL3 chart, which tracks the market capitalization of all altcoins minus Ethereum (ETH) and stablecoins, looks bearish against Bitcoin.
According to Cowen, the weakness of altcoins against Bitcoin suggests that alts may witness a collapse in the coming weeks.
“A majority of the altcoins are still putting in new lows on their Bitcoin pairs and to find ones that are not, you’d have to cherry-pick ones in the top 20 that are not or they’re on their way to new lows right now or you’d have to find a micro-cap that was created recently and show that one that’s not putting in new lows.
But a lot of them are and you can see that by looking at TOTAL3 minus USDT divided by Bitcoin. I think what you’re witnessing right now is the last exit pump of alt/Bitcoin pairs before we see final capitulation of alt/Bitcoin pairs as we go into May and June. That is what I think.”
The analyst says a TOTAL3/Bitcoin pattern that played out in 2019 may be repeating itself in the current cycle.
“This is a very similar pattern we saw last cycle where after setting a low here [in May 2019], we then had one final bounce [in June 2019] that ultimately faded just below the bull market support band and then it rolled over into the summer.
And a lot of times you will see alt/Bitcoin pairs capitulate in the summertime because a lot of people aren’t as glued to their computers as they are during the fall and the spring and the winter. During the summertime, people focus on other things a lot of times, and so the collective bid for the altcoin market can often dry up.
And so I think that that’s what you’re looking at right now. I think we’re seeing alt/Bitcoin pairs get this final bounce up, but I think they’re going to ultimately fail here and go back down to the range lows but this time when they break, I don’t think there’s going to be any mercy in another rally. I think it’ll just lead you into the final capitulation, going back to 25% of Bitcoin’s market cap.”
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