In a recent strategy session, renowned crypto analyst Benjamin Cowen makes key considerations for four altcoins. Analyst’s opinions matter. Because it offers comparisons with the past period. It also highlights similarities and differences. Let’s take a look at Cowen’s views.
Market models for Bitcoin dominance and others
Famous analyst Cowen Polkadot shared his predictions for several altcoins such as Cardano and Avalanche. Cowen suggests that these altcoins, including Ethereum, could experience short-term rallies similar to those seen in 2018 before hitting new lows. In this case, important price movements are on the agenda for the altcoin selection in question.
Tracked by the BTC.D chart, Bitcoin’s dominance level plays a crucial role in investors’ choices between Bitcoin and others. Cowen emphasizes that the current altcoin rally is expected to stop once Bitcoin’s dominance is re-established. Investors are keeping a close eye on Bitcoin’s dominance, gaining insight into the market’s preference for altcoins.
Altcoin market is similar to previous models
Cowen believes that the altcoin market follows a similar pattern to past events. Altcoins were initially bullish against Bitcoin. But he cites examples from 2018 and 2019, where it eventually retreated to lower market cap ratios. Establishing parallels, Cowen states that Bitcoin’s dominance rally will continue as net liquidity dwindles. He also predicts that it will potentially test the 49% to 50% level.
Cowen offers insights for four altcoins in particular. Major cryptos such as Polkadot, Cardano, Avalanche, and Polygon are currently facing resistance at their 20-week simple moving averages (SMA). Cowen points out that these coins are struggling to break through this resistance level. It also points to potential difficulties in sustaining their rally.
Bitcoin’s dominance grows while others are vulnerable
Previously, Cowen predicted that cryptos would face significant pressure as Bitcoin’s dominance level appeared poised to rise. At the time of this writing, BTC’s dominance level is 49.9%. This indicates that altcoins may have more difficulty gaining market share and sustaining their upward momentum.
When we look at Kriptokoin.com, we see that altcoin rallies occur from time to time in the face of Bitcoin dominance. Benjamin Cowen’s analysis is remarkable. Polkadot highlights the possibility of short-term rally for cryptos, including Ethereum rivals like Cardano and Avalanche. As Bitcoin’s dominance reveals itself, coins are encountering resistance and potential setbacks. Traders and investors should consider Bitcoin’s dominance levels when making informed decisions in the cryptocurrency market. On the other hand, it should carefully consider the interaction of cryptocurrencies with key resistance levels.
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