• Benjamin Cowen, a renowned cryptocurrency analyst, has warned of a potential significant correction in the altcoin markets.
• The warning is based on Bitcoin dominance (BTC.D) chart which currently appears strong and indicates that Bitcoin (BTC) is poised to exert greater influence over the crypto markets as it inches closer to its halving event next year.
• Cowen predicts that capital is likely to rotate from altcoins back into Bitcoin, although he acknowledges that the process may take time.
Analysis of Crypto Market by Renowned Analyst
Renowned cryptocurrency analyst Benjamin Cowen has issued a cautionary message to investors, alerting them to a potential significant correction in the altcoin markets. In his recent video update, Cowen points to historical patterns that suggest a looming downturn for altcoins.
Bitcoin Dominance Chart
Cowen’s analysis revolves around the Bitcoin dominance (BTC.D) chart, which currently appears strong and indicates that Bitcoin (BTC) is poised to exert greater influence over the crypto markets as it inches closer to its halving event next year. Furthermore, Cowen explains that there’s a key threshold of 49% for BTC.D – if this level is broken past then consider it a “risk-off” signal. Historical examples such as May-June 2022 demonstrate that even when BTC takes temporary dips its dominance can soar higher than before.
Capital Rotation from Altcoins Back into Bitcoin
Cowen predicts that capital is likely to rotate from altcoins back into Bitcoin but acknowledges that this process may take some time; he observes gradual bleeding of altcoins back into Bitcoin and advises investors accordingly with respect to their risks and rewards outlooks for both assets in question – BTC and ALT coins alike..
Advisory Message for Investors
In light of Cowen’s warnings, investors face a challenging period where they must decide whether or not they should adopt a “Bitcoin maxi” perspective or continue exploring opportunities within altcoins – depending on their risk tolerance levels and investment goals respectively.
Overall, with Cowen’s warning fresh in mind, investors looking at investing in either asset class should proceed carefully and make sure they are fully informed about all aspects before making any decisions related to investments in cryptos or other financial instruments – be it stocks bonds etc .