High cryptocurrency analyst Benjamin Cowen predicts that altcoins are on the verge of witnessing a extreme correction towards Bitcoin (BTC).
Cowen tells his 751,100 Twitter followers that he’s conserving an in depth watch on the overall market cap of altcoins (TOTAL3) towards Bitcoin.
In line with the crypto strategist, the chart suggests that altcoins will witness large capital outflows as market members flock to BTC.
“In July 2019, altcoins have been on the identical valuation towards BTC that they’re in the present day. Whereas timeframes should not have to align completely, this chart nonetheless means that altcoins might collectively drop one other 40% towards BTC. It’s known as the altcoin reckoning for a cause.”
Cowen notes, nevertheless, that some altcoins might rally of their Bitcoin pairs, however that shouldn’t low cost the bigger pattern he’s predicting.
“This doesn’t imply you can’t have occasional bounces on ALT/BTC pairs. Historical past exhibits us that markets transfer stochastically. Bounces don’t low cost a macro thesis on ALT/BTC pairs.”
The dealer additionally highlights that the Bitcoin dominance (BTC.D) chart seems to be consolidating in preparation for an additional leg up.
The BTC.D index tracks how a lot of the overall crypto market cap belongs to Bitcoin. A bullish BTC.D chart means that Bitcoin is taking a bigger share of the crypto markets on the expense of altcoins.
“Appears like BTC dominance is simply consolidating earlier than one other transfer larger quickly.”
At time of writing Bitcoin is buying and selling for $30,568 whereas BTC.D hovers at 51.53%.
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