A widely known cryptocurrency analyst has issued a warning: The rest of 2024 looks unlikely to be ideal for altcoins.
Crypto strategist Benjamin Cowen tells his 813,000 YouTube subscribers in a new video update that based on historical patterns, altcoins are likely to crash and slam Bitcoin (BTC) at the end of the year.
Cowen said the capitulation coincided with the start of a new rate-cutting cycle.
“If you connect the dots from the last cycle, 2018, 2019 to 2020, you can see that we’ve basically tagged this trendline three times and then the third tag on the trendline was the bottom.
We know that this interest rate cycle, this economic cycle, has been going on for a little bit longer, and if we connect the dots again – 1, 2, 3 – the third tag on the trend line could actually happen at the end of the year. And coincidentally, if you look at this trend line that we’ve connected the dots on, it hits 0.25 in Q4, which is the end result that I’m talking about, the altcoin/bitcoin pair is going to capitulate before the end of the year.
So I think there is an argument that the alt/Bitcoin pair could simply reject at 0.4. They could still go a bit higher than that, but I think it will ultimately be rejected and we will see a range low before the end of the year.”
According to Cowen, a big growth factor for digital assets is the low net global liquidity, which will also cause altcoins to decline compared to the top crypto assets by market cap.
“One of the things to consider is what’s causing this to drop, and one of the most important things is net liquidity. So if you look at the global net liquidity approximation, you can see that it’s actually been hitting lower highs and lower lows for a while, and in fact if you overlay that chart with the alt/Bitcoin pair, you can see very clearly that the alt/Bitcoin pair has been experiencing a fake collapse at the same time that the net liquidity has been going through a fake collapse.”
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