Renowned crypto analyst Benjamin Cowen has issued a stark warning to investors, signaling an impending “altcoin reckoning” amidst the ongoing market correction. With a substantial following of 783K subscribers on his YouTube channel, Cowen’s insights carry weight in the crypto community.
Altcoin Market Bottomed?
Cowen challenges the notion that altcoins have reached their bottom after enduring significant retracements over the past year. In a recent video update, he emphasized that investors should not dismiss the possibility of further declines, underlining the vulnerability of the altcoin market.
The “altcoin reckoning,” as described by Cowen, is a phenomenon that could prolong the downturn for altcoins until the Bitcoin dominance ranges high is breached. Cowen believes this critical event has not yet transpired, suggesting that altcoins may face additional challenges in the near future.
BTC: On a “Risk-Off” Signal
He also analyzed and has been closely monitoring the Bitcoin dominance (BTC.D) chart as a key indicator of market sentiment. He considers a BTC.D level surpassing 49% as a “risk-off” signal, indicating that Bitcoin is gaining a larger share of the overall crypto market capitalization at the expense of altcoins. At the time of reporting, BTC.D remains above the 49% mark, underscoring the potential headwinds for altcoins.
Ethereum/Bitcoin Trading Pair Collapse
Moving deep into his analysis Cowen said, the altcoin reckoning may not reach its conclusion until a collapse occurs in the Ethereum/Bitcoin (ETH/BTC) trading pair. He predicts a significant devaluation, followed by a potential rebound before a final plunge takes place. However, he cautions that predicting the exact timing of this event is challenging. Currently, the ETH/BTC pair is trading at 0.067 BTC ($1,728).
