Altcoins
Expert Warns Against Buying Altcoins Dip, Here’s Why
In a market rife with volatility, Into The Cryptoverse CEO and Founder Benjamin Cowen has issued a warning. His insights, shared on social media platform X, offer a different perspective on the current state of altcoins and the broader market landscape.
Benjamin Cowen advises not to buy the decline in Altcoins
Cowen’s cautionary tale begins with a look back at historical market trends, particularly the troubling parallels with the events of 2019. He highlights the critical moment when Ethereum’s ratio to Bitcoin faltered just before a 70% correction in the altcoin market.
This precedent sets the stage for his concerns regarding the recent breakdown of Ethereum’s ratio against Bitcoin. Additionally, the ETH/BTC pair just broke support two days ago, accelerating the risk of mirroring the past pullback. The dialogue initiated by Cowen’s comment sparks discourse among users.
One observer noted that many altcoins have already seen a 70% decline. However, Cowen warned of a further decline. He noted, “Just because an alt dropped 70% doesn’t mean it can’t drop another 70%.” »
At the heart of Cowen’s analysis is the notion of Bitcoin dominance, which he estimates could reach 60%. Drawing on historical market cycles, he highlighted the inverse relationship between Bitcoin dominance and altcoin fortunes. Therefore, it suggests an impending period of turbulence for the altcoin sector.
Despite some users’ claims about the ongoing bull market, Cowen remains firm in his analysis. He highlighted Bitcoin’s meteoric rally in the first half of 2019, which preceded a altcoin correction. Furthermore, he pointed out that this rise coincided with macroeconomic indicators such as Federal Reserve rate cuts and the gold breakout.
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Matrixport echoes the sentiment
In a recent analysis, Cowen identified a potential bottom for Ethereum’s ratio to Bitcoin. This signals a long period of market consolidation to come. He wrote: “We now officially have a weekly close below the June 2022 low.” Cowen added: “Potential ETH/BTC bottom this summer after being in a bear market since November 2021.”
Additionally, he added: “The timeline can change, but the last two times this happened, the final surrender process took 2-3 months. » This decreasing ETH/BTC ratio could lead to a gigantic drop in altcoins, a sentiment echoed by Matrix port, a digital asset platform. In an article on X, Matrixport noted: “Some have argued that we should be on the cusp of an altcoin rally. »
They vehemently refuted these claims due to the growing dominance of Bitcoin. They wrote: “While there have been massive rallies in a handful of coins and altcoins, the broader rally could still be in its infancy depending on the #Bitcoin dominance ratio.” Matrixport added that this indicates that this bull market is very narrow, with Bitcoin gaining even more market share.
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