A widely followed crypto analyst is warning that altcoins could still correct even deeper against Bitcoin (BTC).
In a new video update, crypto strategist Benjamin Cowen tells his 803,000 YouTube subscribers that the TOTAL3 weekly chart, which tracks the market capitalization of all altcoins minus Ethereum (ETH) and stablecoins, is looking bearish against Bitcoin.
“Altcoins are potentially only a few weeks from really breaking this support and going down to the range lows. And you should know that my base case is that altcoins will bleed on their Bitcoin pairs to these range lows. I don’t care if you think your altcoin is the best thing in the world. I don’t care how great the community is. In my own experience, altcoins are oscillators against Bitcoin at best individually. And if they’re individually oscillators at best, then collectively they’re oscillators at best. So because of that, I still think that altcoins have a long way to go down against Bitcoin.”
Cowen says if recent history repeats, the alt market could collapse if Bitcoin retests range highs, failing to flip them into support.
“The big question now is does that move come on a Bitcoin rally or does it come on a Bitcoin dump? And that’s honestly the hardest part to figure out. If you look actually at the last two times that alt/Bitcoin pairs had these larger drawdowns on April 8th and June 17th it actually occurred just after Bitcoin was rejected from the highs, it was just after Bitcoin got rejected from these highs up here. So if it follows suit again, and Bitcoin gets rejected and it gets a lower high that could very well correspond to the actual beginning of the alt/Bitcoin devaluation.”
Bitcoin is trading for $65,675 at time of writing, down slightly in the last 24 hours.
Generated Image: Midjourney