- Leading crypto analyst, Benjamin Cowen, cautions that a significant correction or “reckoning” for altcoins is yet to come.
- Cowen asserts that the Ethereum/Bitcoin (ETH/BTC) trading pair could see a sharp drop, indicating the end of the “altcoin reckoning.”
Renowned crypto strategist, Benjamin Cowen, offers a cautionary perspective on the future of altcoins in the volatile cryptocurrency market. With a significant following of over 783,000 on YouTube, Cowen advises his audience to remain vigilant, suggesting that a greater “altcoin reckoning” is yet to occur despite the recent crypto market corrections.
Cowen stresses that the drop in altcoin values could continue significantly, despite already having seen extensive retracements over the past year. He elaborates,
“The altcoin reckoning is a serious thing. You should not laugh at it just because you think that your altcoins [are] already down 80% [and they] can’t keep dropping. The altcoin reckoning can go on and on and on, and it’s only until after the (Bitcoin) dominance range high is broken that altcoins even get to the penultimate stage of the altcoin reckoning, which hasn’t even happened yet.”
Cowen has previously highlighted the importance of the Bitcoin dominance (BTC.D) chart, noting that a break above the 49% dominance level would serve as a “risk-off” signal. The Bitcoin dominance index represents the percentage of the total crypto market capitalization that Bitcoin occupies. A bullish BTC.D chart implies Bitcoin’s growing market share, often at the expense of altcoins. At the time of reporting, BTC.D is floating just above 49%.
Further extending his argument, Cowen predicts that the impending altcoin adjustment will not conclude until we witness a dramatic drop in the Ethereum/Bitcoin (ETH/BTC) trading pair. He asserts,
“So where does it end? Well for some, it never will. For others, it will and where I think it ends I’ve been clear about. I think it ends upon the collapse of the Ethereum/Bitcoin valuation. That is what I think…”
He anticipates a sharp decline in the ETH/BTC valuation followed by a potential rebound and further plunge. However, the timing of this event remains uncertain. He concedes,
“When is it going to happen? I don’t know. I would have told you five months ago, but there’s been a lot more resilience in Ethereum than I thought there was going to be, (but that) doesn’t mean that it won’t eventually break back down.”