Closely followed analyst Benjamin Cowen says that Bitcoin (BTC) will likely continue to outshine altcoins for the foreseeable future.
In a new strategy session, Cowen takes a look at Ethereum in its Bitcoin pair (ETH/BTC), which is often used as a gauge for altcoin strength.
According to Cowen, ETH/BTC is in the process of bottoming out, but he forecasts that Bitcoin Dominance (BTC.D), which compares the market cap of Bitcoin to that of all digital assets, will continue to go up, potentially topping out at the 60% level.
Before BTC.D tops out, Cowen says many altcoins will capitulate against Bitcoin.
“I do think dominance is going to go to 60% in Q4 and that means that I think that alt/Bitcoin pairs will take that plunge. Of course the question is it coming on a Bitcoin rally or is it coming on a Bitcoin dump. Last cycle it basically occurred on a combination of both.”
At time of writing, BTC.D is hovering at 58%.
The analyst also that the $63,000 to $64,000 range – roughly where the 200-day moving average is – is a key range of resistance that BTC has to get through before kicking off a legitimate rally.
“So I would say that $63,000 to $64,000 is going to be the big level. If Bitcoin can get back through that and put in a higher high again then, it definitely raises the odds of Bitcoin continuing to go up in Q4.
If Bitcoin just finds resistance at $63,000 to $64,000 again, then there’s more evidence to suggest that it’s just playing out like it did after rate cuts last cycle where you get a couple weeks rally, you get an impressive rally but the market just sells off afterwards because it’s not enough.”
At time of writing, Bitcoin is trading for $63,824, up nearly 3% on the day.