Analyst Benjamin Cowen is saying that the altcoin market could stop bleeding against Bitcoin (BTC) when one key event occurs.
In a new video, Cowen tells the 806,000 subscribers of his YouTube channel that a reliable gauge of the altcoin market is the performance of Ethereum against Bitcoin (ETH/BTC).
Cowen suggests that once the ETH/BTC trading pair reaches the range between 0.04 BTC and 0.03 BTC on the weekly chart, which it just touched, Bitcoin dominance (BTC.D) could soon start to decline.
The BTC.D index tracks how much of the total crypto market cap belongs to Bitcoin. A declining BTC.D suggests that altcoins are going to outperform Bitcoin.
“When we talk about the altcoin market as a whole, I do think that the ETH/Bitcoin valuation is instrumental in helping us understand, Is the altcoin market going to do well or does it face some troubles? And one of the things that we’ve said this year, and really for the last two and a half years, is that altcoins will likely continue to bleed back to Bitcoin until the ETH/Bitcoin valuation goes to the 0.03 BTC to 0.04 BTC range.
Now ETH/Bitcoin just hit 0.04. Okay, so the upper target of the range that we said a long time ago, years ago, has finally been hit. After all this time, it’s finally been hit.”
ETH/BTC is trading for 0.04276 BTC ($2,560) at time of writing, up 1.45% in the last 24 hours.
Cowen believes that BTC.D may peak within months.
“I’ve said many times, I do think we could see dominance top in September at the earliest. Could also top in December, potentially.”
At time of writing, BTC.D is hovering at 57.64%.