In a market rife with volatility, the CEO and founder of Into The Cryptoverse, Benjamin Cowen, has issued a warning. His insights, shared on the social media platform X, offer a differing perspective on the current state of altcoins and the broader market landscape.
Benjamin Cowen Advises Not To Buy The Dip In Altcoins
Cowen’s cautionary narrative begins with a retrospective glance at historical market trends, particularly the unsettling parallels to the events of 2019. He highlights the critical juncture when Ethereum’s ratio against Bitcoin faltered just before a 70% correction in the altcoin market.
This precedent sets the stage for his concerns regarding the recent breakdown in Ethereum’s ratio against Bitcoin. Moreover, the ETH/BTC pair just broke the support two days ago, which expedites the risk of mirroring the past pullback. The dialogue initiated by Cowen’s commentary sparks a discourse among users.
One observer noted that many altcoins have already experienced 70% declines. However, Cowen cautioned against a further decline. He noted, “Just because an alt has dropped 70% doesn’t mean it can’t drop another 70%.”
Central to Cowen’s analysis is the notion of Bitcoin dominance, which he predicts could surge to 60%. Drawing upon historical market cycles, he underscored the inverse relationship between Bitcoin’s dominance and the fortunes of altcoins. Hence, he suggests a looming period of turbulence for the altcoin sector.
Despite assertions from some users about the ongoing bull market, Cowen remains steadfast in his analysis. He pointed to Bitcoin’s meteoric rally in the first half of 2019, which preceded against an altcoin correction. In addition, he highlighted that the surge coincided with macroeconomic indicators such as the Federal Reserve’s rate cuts and the breakout of gold.
Also Road: Top 3 Layer 1 Altcoins To Buy To Turn $1000 Into $5,000 BTC Halving Week
Matrixport Echoes The Sentiment
In a recent analysis, Cowen identified a potential bottom for Ethereum’s ratio against Bitcoin. This signals an protracted period of market consolidation ahead. He wrote, “We now officially have a weekly close below the June 2022 low.” Cowen added, “Potential bottom of ETH/BTC this summer after being in a bear market since Nov 2021.”
Moreover, he further added, “Timing can change, but the last 2 times this happened, the final capitulation process took 2-3 months.” This diminishing ratio of ETH/BTC could lead to a gigantic decline in altcoins, a sentiment echoed by Matrixport, a digital assets platform. In a post on X, Matrixport noted, “Some have argued that we should be on the cusp of an altcoin rally.”
They vehemently refuted such claims owing to the growing Bitcoin dominance. They wrote, “Although there have been massive rallies in a handful of meme-coins and altcoins, the broader upside could still be in its infancy according to the #Bitcoin dominance ratio.” Matrixport added that this signals that this bull market is very narrow, with Bitcoin gaining even more market share.”
Also Read: Bitcoin Dominance Surged To Three Year High; What Will Happen Next?