A widely followed crypto analyst is issuing a warning, saying the remainder of 2024 looks far from ideal for altcoins.
In a new video update, crypto strategist Benjamin Cowen explains to his 813,000 YouTube subscribers that, based on historical trends, altcoins appear poised to fall toward the end of the year and capitulate to Bitcoin (BTC).
Cowen says the capitulation is also part of the start of a new cycle of interest rate cutting.
“If you connect the dots of the last cycle, 2018, 2019 to 2020, you can see that he basically tagged that trendline three times, and then the third tag of the trendline ended up being the bottom.
We know that this interest rate cycle, this economic cycle, has taken a little bit longer and if you connect the dots again – one, two and three – the third trendline marker could actually occur by the end of the year and coincidentally, if you look at that trendline where you connect the dots, it hits 0.25 in the fourth quarter, which is exactly what I said could be the ultimate outcome: the alt/Bitcoin pairs capitulating before the end of the year.
So I think there is reason to believe that the alt/Bitcoin pairs will simply get rejected at 0.4, they could still go a little bit higher, but I think ultimately they will get rejected and get back to the range lows before the end of the year.”
According to Cowen, altcoins will also lose ground to the leading crypto asset by market cap due to low global net liquidity, which he says is a major driver for digital assets.
“One of the things you have to consider is what caused this decline, and probably one of the main ones is net liquidity. So if you look at the proxy for global net liquidity, you’ll see that it’s actually been making lower highs and lower lows for quite some time, and in fact, if you overlay that chart on alt/Bitcoin pairs, you can actually see quite clearly that alt/Bitcoin pairs have been falling at the same time that net liquidity has been having a false fall.”
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