Altcoins Face 75% Decline Against Bitcoin Says Analyst

Cryptocurrency analyst Benjamin Cowen has cautioned that altcoins may soon face a substantial decline against Bitcoin. In a recent strategy session, Cowen shared his insights with his 900,000 YouTube subscribers, highlighting that the TOTAL 3 chart, which monitors the market capitalization of all digital assets excluding Bitcoin, Ethereum, and stablecoins, remains in a downtrend against Bitcoin and has yet to find a market bottom.

Cowen emphasized that altcoins, in his opinion, are oscillators at best against Bitcoin and many of them simply lose value to Bitcoin. He believes that if individual altcoins bleed to Bitcoin, then collectively they should as well. This is why he thinks alt/Bitcoin pairs will eventually find themselves at lower levels, possibly around 0.25. According to Cowen, it is just a matter of time before this happens.

A move toward the support area highlighted by Cowen would indicate that altcoins are significantly underperforming Bitcoin. Cowen also noted that altcoins are in a multi-year downtrend against Bitcoin with no signs of reversing the trend anytime soon. He pointed out that the chart shows a slow conversion of people holding altcoins and converting them to Bitcoin. The chart also indicates that altcoins put in a new low against Bitcoin on June 1st, invalidating any prior calls for a low by alt/Bitcoin pairs up until that date.

Cowen's analysis suggests that the current market conditions are ripe for a correction in the altcoin market, which could see these digital assets lose value relative to Bitcoin. This prediction is based on historical patterns and the current state of the cryptocurrency market, where altcoins have been performing well but may be due for a pullback. Cowen's warning comes at a time when the cryptocurrency market is experiencing heightened volatility, with Bitcoin showing resilience while altcoins have been on a rollercoaster ride.

Cowen advises investors to be cautious and to avoid making impulsive decisions based on short-term market movements. Instead, he recommends a long-term investment strategy that focuses on diversification and risk management. He believes that investors should be prepared for a potential decline in altcoin prices and that those who are heavily invested in these assets should consider taking profits or rebalancing their portfolios.

Cowen's warning is a reminder that the cryptocurrency market is highly unpredictable and that investors should always be prepared for the possibility of significant price movements. While altcoins have the potential for high returns, they also come with a high degree of risk. Investors who are considering entering the altcoin market should do so with caution and should be prepared for the possibility of a correction. By taking a disciplined approach to investing and focusing on long-term goals, investors can navigate the volatile cryptocurrency market and achieve their financial objectives.