Analyst Benjamin Cowen Predicts Altcoin Reckoning as One Indicator Hints at Another Leg Down

A broadly adopted crypto analyst is predicting a meltdown for altcoins as one key metric suggests they’ve a lot additional to drop.

In a brand new video replace, crypto strategist Benjamin Cowen tells his 780,000 subscribers that an altcoin reckoning is on the horizon as a result of the Bitcoin (BTC) dominance chart (BTC.D) nonetheless stays low.

The BTC Dominance chart tracks how a lot of the overall crypto market capitalization belongs to Bitcoin. According to Cowen, the altcoin market stays a falling knife till BTC.D resolves to the upside.

“One of the issues that [has] stored me actually bearish on the altcoin market is after all the Bitcoin dominance. [It is] nonetheless very low and now at 42%, should you exclude stablecoins, it’s one thing like 48%…

Even although the dominance continues to be low, that is what’s stored me from shopping for altcoins this 12 months. This is what has stored me from saying in 2022 ‘Look guys, I do know you just like the shiny altcoin objects in a bull market, however in a bear market, they aren’t your folks, don’t marry an altcoin.’

I acknowledge the dominance continues to be low, however I’ll say this metric is absolutely what’s stored me largely from shopping for altcoins and up to now it’s labored out fairly effectively.” 

With altcoins dominating the crypto markets, it means that merchants are nonetheless speculating on digital belongings aside from Bitcoin.

Using sensible contract platform Cardano (ADA) as an instance of a outstanding altcoin that would dip, Cowen notes the crypto asset’s huge value drop over the past 12 months.

“The idiosyncratic threat of a single altcoin is solely not price it, and ADA is now down 92%, however over the last bear market, ADA dropped 98%, nearly 99% from the all-time excessive. It provides you an concept of how unhealthy it bought

If [ADA} were to go down 98.77%, it would go back down to $0.04.”

Bitcoin is changing hands for $16,524 at time of writing while ADA is moving for $0.245.

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