A widely followed crypto analyst warns that the rest of 2024 doesn’t exactly look ideal for altcoins.
In a new video update, crypto strategist Benjamin Cowen tells Its 813,000 YouTube subscribers indicate that based on historical patterns, altcoins will plummet and capitulate against Bitcoin (BTC) by the end of the year.
Cowen says the capitulation also coincides with the start of a new cycle of rate cuts.
“If you connect the dots from the last cycle, 2018, 2019 and 2020, you can see that this trendline was actually tagged three times and the third tag of the trendline finally reached the bottom.
We know that this interest rate cycle, this business cycle, has lasted a little longer and if you reconnect the dots – one, two and three – the third tag of the trend line could actually happen towards the end of the year and coincidentally. if you look at this trendline where you connect the dots, it comes out to 0.25 in the fourth quarter, which is exactly what I said the final outcome could be: alt/Bitcoin pairs capitulating before the end of the year.
So I think an argument can be made that alt/Bitcoin pairs are simply rejected at 0.4, they may still rise a little bit above that, but ultimately I think they will be rejected and they will come back to the lows of the range before the end of the year.”
According to Cowen, altcoins will also detract from major crypto assets in terms of market capitalization due to low net global liquidity, which he believes is a big driver for digital assets.
“One of the things to consider is what’s driving this down, and perhaps one of the most important things is net liquidity. So if you look at the global net liquidity approach, you’ll see that it’s actually been showing lower highs and lower lows for a while now, and if you overlay this chart of alt/Bitcoin pairs, you can see that quite clearly. alt/Bitcoin pairs collapsed in the fake out, while net liquidity had a fake collapse.”
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