The altcoin market could be on the verge of a decline compared to Bitcoin, as warned by Benjamin Cowen, a cryptocurrency strategist who has a significant audience on his channel. YouTube.
During a recent video update, Cowen analyzed the TOTAL3 chart, which tracks the market capitalization of all altcoins excluding Ethereum and stablecoins, and noted a bearish outlook for these coins relative to Bitcoin.
Cowen highlights that altcoins have shown significant weakness in their peers with Bitcoin, which could indicate an imminent devaluation in the short term. “Most altcoins are still setting new lows in their Bitcoin pairs and to find the ones that aren't, you would have to pick those in the top 20 that aren't or are on their way to new lows now or you would have to find a micro-cap that was created recently and show one that is not showing new lows.
But many of them are and you can see this by looking at TOTAL3 minus USDT divided by Bitcoin. I think what you are witnessing now is the last pump out of the alt/Bitcoin pairs before we see the final capitulation of the alt/Bitcoin pairs as we move into May and June. That's what I think.”
The expert also compared the current situation with a pattern observed in 2019. “This is a very similar pattern to what we saw in the last cycle, where after establishing a minimum here [in May 2019], we had a final recovery [in June 2019]. XNUMX] which finally disappeared just below the bull market support band and then rolled into the summer. And you will often see alt/Bitcoin pairs capitulate in the summer because many people are not as glued to their computers as they are during the fall, the spring and winter. During the summer, people often focus on other things and therefore the collective supply across the altcoin market can often dry up.
And so I think that's what you're seeing now. I think we are seeing the alt/Bitcoin pairs rally finally, but I think they will fail here and go back to the range lows, but this time when they break, I don't think they will show mercy on another rally. I think this will just lead you to final capitulation, back to 25% of Bitcoin’s market cap.”
At the time of publication, the Bitcoin price it was quoted at US$63.215,68 with a drop of 1% in the last 24 hours.
