A widely followed analyst says that the real “altcoin reckoning” is still on the horizon despite the latest crypto correction.
In a new video update, crypto strategist Benjamin Cowen tells his 783,000 YouTube subscribers that those who believe altcoins can’t continue to drop further after their deep retracements over the past year should think again.
According to Cowen, the real altcoin capitulation is still coming.
“The altcoin reckoning is a serious thing. You should not laugh at it just because you think that your altcoins [are] already down 80% [and they] can’t keep dropping.
The altcoin reckoning can go on and on and on and on, and it’s only until after the (Bitcoin) dominance range high is broken that altcoins even get to the penultimate stage of the altcoin reckoning, which hasn’t even happened yet.”
Earlier this month, Cowen said that he’s keeping a close watch on the Bitcoin dominance (BTC.D) chart. According to Cowen, the crypto king’s dominance level breaking above 49% would be a “risk-off” signal.
The Bitcoin dominance index tracks how much of the total crypto market capitalization belongs to Bitcoin. A bullish BTC.D chart suggests that Bitcoin is taking a larger share of the crypto markets at the expense of altcoins.
At time of writing, BTC.D is hovering above 49%.
Cowen goes on to say that he believes the altcoin reckoning won’t end until a collapse of the Ethereum/Bitcoin (ETH/BTC) trading pair.
“So where does it end? Well for some, it never will. For others, it will and where I think it ends I’ve been clear about. I think it ends upon the collapse of the Ethereum/Bitcoin valuation. That is what I think…
I think the [ETH/BTC valuation] is going to collapse and probably come back down, maybe bounce back up and then and then plunge.
When is it going to happen? I don’t know. I would have told you five months ago, but there’s been a lot more resilience in Ethereum than I thought there was going to be, (but that) doesn’t mean that it won’t eventually break back down.”
At time of writing, ETH/BTC is trading for 0.067 BTC ($1,728).
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